The states that do this, and the fed that agreed to is, did so because of heavy (and I do mean heavy) lobbying by the restuarant industry.
The theory is this: Patrons tip, tips that are gained, will equal out to or more than the minimum wage if it's all averaged out and added to the hourly pay rate.
Want to add another piece of BS.. All tips over ( I think this is still the amount. I could be wrong though) $20 a week must be filed for and taxed for federal income tax purposes. Either the employer will keep track, so that the numbers are there when tax filing time comes around, or the employee must. But tips must be included as income on taxes
So not only do some not even get paid minimum wage, everyone has to pay taxes on the extra they get as well. Some get screwed
It's bullshit. But. The industry successfully lobbied Congress to get this ruling through. It's all about saving business owners a buck. That's it.
at 6:08 PM on Aug. 19, 2010