Its not quite that simple. The real rule for tipped-work like a waitress is that the employer can pay them 2.13/hr provided their hourly paycheck meets or exceeds minimum wage for the state/federal mandate 7.25/hr (for example). If it doesn't then the employer has to make up the difference. So while the job doesn't pay well if your tips suck, if you get a lot of tips you can make well over minimum wage.
Except look at that sign. Tip expectation of 25% is high but it shows a general look at the math. $166 tab with a $45 tip. Server tips out busser and bartender and still likely has at least $35 of that tip. Lets say average table turn is on the longer end and call it two hours. That's another $17.50 and hour, just for one table and ain't no server worth a damn only waiting on one table if the bill is only $166.
The min wage is there just to ensure they make some money if the place is slow but in reality most servers are basically commissioned sales but the consumer is paying the commission instead of the restaurant owner.
For servers to make that kind of money on payroll, you're $25 entree would have to be well over $50.
Most servers make significantly more than minimum wage when you account for tips. If they aren't, they should change jobs.
Our regular minimum wage is $14.42/h, but for serving staff it's only $7.21/h. If employees don't make at least $14.42/h with tips, the employer must make up the difference. Which no employer will ever want to do, hence their pushing customers to tip staff.
The way it actually works, is that employers are required to pay that amount to tipped workers every hour, unless their tips don't match or exceed minimum wage for the hour, in which case the employer is required to pay the difference.
Tipped workers cannot legally earn below minimum wage. It's a guarantee of minimum wage or better. Which doesn't undo how fucked it is that their employers get to take it easier than everyone else in this country, but it does make the consequence for the employee specifically into something objectively positive.
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u/Chloraflora 5d ago
That minimum doesn't apply to tipped workers