I just received my first check from the restaurant today.. $3.08/hr, how is that legal?

Question

I live in the US and am a citizen. Why do restaurants pay so little?
(even with tips, that isn't much, especially if you're doing lunch shift)

Answer 1

Did you figure in your tips and gratuities? Restaurants are allowed to get away with that because you receive tips from customers. Those tips are reportable income and are also taken into consideration of your hourly wage. The actual check you are paid is to compensate for the part of the hour (about 1/3) that you must use for cleaning and preparing the dining area for your next customers. I make about $240 a night in tips, over an 8-hour shift, so my pay, including my tips, averages 32.50 an hour. Take and include your tips and you'll be really amazed at how much you really DO earn...

Sort of sucks, but at the same time, if they cut out the tips, your money would drop below poverty levels, assuming that you make decent tips.

Answer 2

Find out what your state minimum wage is. Then keep track of exactly how much you make in tips for a week. Divide that by the number of hours you worked that week. That hourly tip wage, plus your $3.08 an hour need to add up to at least your state's minimum wage. If they don't then the restaurant has to make up the difference in your pay.

It is law that your employer has an employee rights poster posted where you can view it at will. Usually in a break or storage room. Check it out- it will tell you your state's minimum wage for both tipped and non tipped employees.

If they don't have this poster displayed you can report them at www.osha.gov You can also find more info there.

Answer 3

The minimum wage you are familiar with is for non- tipped jobs. Jobs in which tips are standard have a significantly lower rate. There may be a difference between legal and fair. Depending on your state, the wage they are paying you is most likely legal. Fair is another matter and one you'll need to determine on your own. While tips are expected to compensate for the lower rate, it is true that they often do not. As for why restaurants pay so little, it is an extremely competitive bussiness with often low profit margins. Restaurants must choose where to cut expenses and employees are often the easiest place to start. Sad but true, which is why I vowed never to work in food service again.

Answer 4

By law the restaurant you work for is suppose to augment your pay to where it will equal the minimum wage per hour.

The way it works is this ( In thorey at D.C.) Hypothetical shift/pay.
Minimum wage is 5.15 per hour @ 8 hour shift = 41.20

Restaurant pays you 3.08 per hour for an 8 hour shift = 24.64
You finish your 8 hour shift and report as earnings = 17.00

Now you calculate the following;

Restaurant pay for 8 hour shift 24.64
Tips earned during 8 hour shift 17.00
Earned income for 8 hour shift 41.64


Your reported combined income 41.64
Minimum wage for 8 hours is 41.20
You made over the minimum wage 00.44

Now we need to figure out for a shortage in tips earned for a 40 hour work week.

Minimum Wage for 40 hours is 206.00 But,

Restaurant pay for 40 hours is 123.20
Slow week your tips add up to 64.20
You add up your tips and wages 187.40

Federal Minimum Wage is set at 206.00
Your combined earnings are 187.40
You are short of the minimum wage by 18.60

The restaurant must make up the difference of 18.60 by Federal Labor Laws so that your wage meets the minimum guidelines.

Hope this helps.

Answer 5

They have the legal right to pay you lower because you recieve tips. It sucks ***, but its true. But $3.08/hr sounds really low, even 4 a restaurants, they usually pay about $4.50 with tips. I would look into it...

Answer 6

where do you live in wa the min washington the min wage is like 7.76 per hr not includeing the tips you can walk out of a good shift w-500$$$ in ur pocket but the C.O.L. in the seattle area is outrageous.

Answer 7

Did they make a mistake on taxes? Or did they take out a food allotment? It does not sound right. Are they taking your tips and paying your tax on that. Ask your manager. A question you should have asked before starting a waitress/hostess/bartender job.

Answer 8

Sounds unlawful to me. we've silverware rollers at my eating place, yet we don't tip them out. i'm uncertain what they're paid, yet i think of it would be regardless of the conventional minimum salary is, no longer the server salary. while you're a tipped worker and don't make adequate pointers to equivalent minimum salary in a shift then they're meant to pay you extra effective so which you're a minimum of making minimum salary.

Answer 9

u in kansas? (the only state where every county voted republican in 2004)

the minimum wage there for tipped employees is $2.65/hr, minimum $1.59/hr cash; it's the lowest rate in the union.

Answer 10

did you discuss it with your employer? before you start working, you should know, and they ought to tell you, how much do they pay you per hour. if the 2 of you cannot come to an agreement, then don't work!