tipping - what is the logic? (paycheck, companies, costs, work)

[NJBest]

Originally Posted by Kenneth-Kaunda

why not just do away with the tipping idea and increase the wages instead?

It's ingrained in the way of hospitality here. It would be difficult for everyone to just move to a system where there is no tipping, but rather, the food or service is 20% more expensive.

[chirack]

Originally Posted by NJBest

It's ingrained in the way of hospitality here. It would be difficult for everyone to just move to a system where there is no tipping, but rather, the food or service is 20% more expensive.

And it would change things. I hear the UK does not have much tipping, but they also eat out less frequently probably due to higher prices. They also have a different expectation for the meal. In the US it is in/out don't linger at the restrant there they linger.

[Kenneth-Kaunda]

how come one tips at a restaurant/diner, but not at MacD's or KFC?

[mathjak107]

Originally Posted by NJBest

You seemed to have missed the first bullet point in my post. If the employer keeps tips, the employee still has the right to receive $7.25/hr.

jobs that are deemed supported by tips only have to pay 2.13 an hour if tips bring them over the min wage. tips have to be more than 30.00 per month.

What is the minimum wage for workers who receive tips?

[NJBest]

Originally Posted by mathjak107

jobs that are deemed supported by tips only have to pay 2.13 an hour if tips bring them over the min wage. tips have to be more than 30.00 per month.

What is the minimum wage for workers who receive tips?

Right. So at the end of the day, the employee still ends up receiving a minimum of $7.25/hr. No one is going home with $2.13/hr.

[mathjak107]

im not saying your wrong, im just saying the law isnt minimum wage plus tips . the minimum employer paid wage can be 2 bucks and change.

[Kenneth-Kaunda]

so the employer gets away with paying exploitation wages, because the customer makes up the difference!

something seriously wrong there.

[Kenneth-Kaunda]

from link:

The Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage to covered, nonexempt employees. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions which provides the greater benefits.

so what exactly in an exempt employee?

[Kenneth-Kaunda]

it's quite clear how messed up this system is.

let's say a worker gets $5hr tips - then he loses this off his paycheck

sound a little like communism , but no, of course not - there is an incentive for the employer, but not the worker of course!

Capitalist exploitation at its finest.

[old_cold]

Originally Posted by Kenneth-Kaunda

so the employer gets away with paying exploitation wages, because the customer makes up the difference!

something seriously wrong there.

...as well as a bookkeeping quagmire for owners of establishments
Tip Compliance :: Learning Center