Re:WSJ: Americans Are Tipping Less Than They Have in Years
by MarkSweep on Friday January 10, 2025 @04:19PM
(#42660359)
Not necessarily. In many US states, tips count for a portion of the minimum wage. So if you tip a minimum wage employee but the tip does not cause them to go above the minimum wage, you have only reduced the amount the employer is required to pay. Once the employee receives $5.12 in tips in an hour, they will get each incremental dollar of tips.
Re:WSJ: Americans Are Tipping Less Than They Have in Years
by danaris on Friday January 10, 2025 @04:36PM
(#42660545)
(Note: I know this applies to most US states; other places YMMV) Not if they're not making it up to the regular minimum wage with tips.
The federal minimum wage is $7.25/hr. The federal tipped minimum wage is $2.13/hr. If a tipped employee doesn't get enough tips to reach $7.25/hr for a particular pay period, the employer has to make up the difference.
So with low tips, all you're doing is subsidizing the employer.
Your point is really about minimum wage standards not "subsidization".
The rule of thumb for restaurant business costs in non-tipping-culture NZ is: 1/3 staff costs, 1/3 food costs, 1/3 everything else.