There’s technically two different rates employers are federally required to pay. First there’s the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to “encourage a more competitive market for smaller businesses,” while still ensuring workers make at least the minimum.
If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference.
I imagine the result it that any employee demanding the employer to fill the gap is fired because obviously they provide bad service, otherwise they’d get more tips. Right?
Yeah, given that the most common and least punished form of theft is wage theft, I’d wager that the majority of bosses to whom it would apply don’t follow this rule and see no sanctions of any kind for it…
Wait so they get paid less than the minimum wage? What’s the point of minimum wage if they have to make up for it with tips?
No point. It is purely symbolic.
Yes. One of the many reasons I say we need a UBI.
There’s technically two different rates employers are federally required to pay. First there’s the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to “encourage a more competitive market for smaller businesses,” while still ensuring workers make at least the minimum.
Fucking braindead…
I imagine the result it that any employee demanding the employer to fill the gap is fired because obviously they provide bad service, otherwise they’d get more tips. Right?
Yeah, given that the most common and least punished form of theft is wage theft, I’d wager that the majority of bosses to whom it would apply don’t follow this rule and see no sanctions of any kind for it…
People are generalizing, but this isn’t the case for all of the US. Things vary by state