There are laws in place for service workers related to minimum wage. The employers have to make up the difference if tips don’t meet the rate for hours worked. It seems to me that’s not sufficient for the times.

Hypothetically, if everyone were to stop tipping in the U.S. would things be better or worse for workers? Would employers start paying workers more?

  • @radixEnglish
    14•10 months ago

    https://en.wikipedia.org/wiki/Fair_Labor_Standards_Act_of_1938

    Under the Fair Labor Standards Act, an employer has to pay each employee the minimum wage, unless the employee is “engaged in an occupation in which the employee customarily and regularly receives more than $30 a month in tips”. If the employee’s wage does not equal minimum wage, including tips, the employer must make up the difference.

    https://www.dol.gov/agencies/whd/minimum-wage/faq

    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.

    • guyrocket
      3•10 months ago

      Thanks for those.

      I don’t think it is very common knowledge. I wonder how many people earning $2.xx / hr know this.