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Why don't restaurant have to pay minimal wages when its not a law to tip?

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Asked by mamaofficer at 6:01 PM on Aug. 19, 2010 in Money & Work

Level 31 (50,120 Credits)
Answers (8)
  • thats a great question, bc alot of waitresses dont get tips..not because they are lousy but bc the person eating is cheap!

    Answer by jorjiegirl at 6:02 PM on Aug. 19, 2010

  • 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.


    Answer by pixie_trix at 6:08 PM on Aug. 19, 2010

  • I don't think it's a matter of being cheap othedr that it's a matter of only paying for food. And yes, in California waitresses are paid minimum wage! I was a waitress while attending junior college. And yes it is hard work, I believe some people don't have the money to tip. It's like even the jiffy lube men now expect a tip!!!!!!

    Answer by tryin2BGOOD at 6:09 PM on Aug. 19, 2010

  • Yep, you still have to report tips when you file your taxes. Most peeps don't realize that the waitress has to share that crappy tip with the bus boy and the bartender....

    Answer by WoodWitch at 6:14 PM on Aug. 19, 2010

  • WoodWitch Brings up another good point.. Most restuarants have a "tip policy" and they usually work like this:
    Either ALL tips left during a shift are placed together and then divided up amongst everyone who worked that shift: including cooks, dishwashers, bussers...etc


    The wait staff is must give a portion of their tips (either a specific percentage, or it's up to their discretion) to the: cooks, bussers, dishwashers..etc...

    Very rarely does a member of the waitstaff keep every single dime that was left to them at the end of their shift.. Everyone is tipped out with the money.

    ((my husband is a general manager in the restaurantt/bar industry.. that's how I know about these things.. lol... His company's tip policy is that it's up to the waitstaff to give whatever they choose to.. there is no required amount.)

    Answer by pixie_trix at 6:20 PM on Aug. 19, 2010

  • Waitresses in Cali are paid minimum wage ...

    Answer by tasches at 6:40 PM on Aug. 19, 2010

  • Waitresses do have a min wage, but it's WAY below regular min wage. Here in SC people are SO DAMN CHEAP when eating out, even if the waitress rocks they still dont tip. They should get at least the regular min wage if you ask me, though thats still not a living wage.

    Answer by vbruno at 11:40 AM on Aug. 20, 2010

  • It is called a LOOP HOLE!

    Answer by Gene_Godwin at 12:41 AM on Aug. 21, 2010

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