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Re:Is 'No tax on tips' a distraction from the fight to end s... by MattPalmer1086 on Tuesday August 27, 2024 @01:52PM (#41370567)
I assume business would just lower the amount they pay, since tips would be worth more.
Re:Is 'No tax on tips' a distraction from the fight to end s... by IgorPartola on Tuesday August 27, 2024 @01:58PM (#41370647)
Businesses already pay the exact minimum wage of $2.13/hour. The employees either make an additional $5.12/hour in tips or the employer must make up the difference at every pay period. Employees routinely underreport their tip earnings beyond the $5.12/hour to not pay taxes and fly under the DoL radar.

Edit: I should add that lots of states and some cities have their own minimum wage laws but they are all structured the same. There is a minimum wage like $10/hour but if an employee is tipped the employer can claim a “tip credit” of like $6 and pay the employee only $4. Then if the employee is underpaid the employer must. Make up the difference. Employees who routinely don’t make full tips are less likely to continue working at the restaurant but you can’t just legally fire them for not making enough tips.

I am sure lots of people have also noticed fast food restaurants pushing for tips for the crew at checkout. This is an industry shift. Same with single owner businesses asking for tips (generally if someone sets their own price a tip shouldn’t be expected, but Square et al made that a normal part of checkout and people now believe it’s necessary). With expected tips getting into the 25-30% territory I wonder if there is an opportunity here for a restaurant chain to advertise itself as “we pay our employees well so you don’t have to”.

Re:Is 'No tax on tips' a distraction from the fight to end s... by akavi on Tuesday August 27, 2024 @02:39PM (#41371175)
> I should add that lots of states and some cities have their own minimum wage laws but they are all structured the same.

Rule of thumb, there's _nothing_ in US law where you can say "things vary by state, but they're all the same in way X".

In this case, California has no concept of tip credits. All employees, regardless of whether they receive tips, must be paid at least minimum wage (Currently 16 $/hr)

Re:Is 'No tax on tips' a distraction from the fight to end s... by IgorPartola on Wednesday August 28, 2024 @09:29AM (#41379280)
There are several laws like that, for example for child support. But there isn’t one for minimum wage. You cannot however violate Federal minimum wage laws as enforced by DoL at the state or local level. So in effect that law spells out a pattern.

Having reviewed these laws in all applicable jurisdictions they do follow the same pattern: California’s tip credit is $0 as of right now. Oh and there is the Panera exception to its minimum wage law which is fairly novel.

Re:Is 'No tax on tips' a distraction from the fight to end s... by phainopepla2 on Tuesday August 27, 2024 @02:37PM (#41371145)
> Edit: I should add that lots of states and some cities have their own minimum wage laws but they are all structured the same. There is a minimum wage like $10/hour but if an employee is tipped the employer can claim a “tip credit” of like $6 and pay the employee only $4

This is not true in California, at least. Restaurant workers are paid at least minimum wage (which is $16 or higher depending on locality) and then tips on top. "Tip credit" is not allowed

Re:Is 'No tax on tips' a distraction from the fight to end s... by MattPalmer1086 on Wednesday August 28, 2024 @02:11PM (#41382412)
Wow, that is a f**d up system, that employers can pay less than minimum wage if the employees do a good job.
Re:Is 'No tax on tips' a distraction from the fight to end s... by valiant55 on Tuesday August 27, 2024 @01:58PM (#41370648)
I served for years, almost no one was claiming the exact amount of your cash tips. Credit card tips would automatically be tallied but cash tips are effectively under the table.
Re:Is 'No tax on tips' a distraction from the fight to end s... by onlyrealcuzzo on Tuesday August 27, 2024 @02:13PM (#41370851)
What percentage of people are tipping in cash?