I know it is because of potential tips. But how is that legal?
2007-01-31 15:46:57 · 11 answers · asked by Ejsenstejn 2 in Politics & Government ➔ Law & Ethics
It is because of the tips.
There are various reasons behind this. From the customer's standpoint, it encourages waiters to work hard for the customer. Provide good service and the waiter will be rewarded. Provide poor service and you won't make much money.
It's legal because waiters are not paid less than minimum wage. Their employers are allowed to pay them less to allow for the waiter to earn tips to make up the difference. If a waiter does not earn enough in tips to get to the minimum wage, then the employer must pay the difference to get the waiter to minimum wage. If the employer has to do this, you may be sent packing.
2007-01-31 15:55:20 · answer #1 · answered by P W 3 · 0⤊ 0⤋
What most people don't know, is that if a waitress does not make enough tips to put their wages above minimum wage, the restaurant has to make up the difference.
Ie: the waitress works 20 hours in a week.
She reports tip income of $50.40
Minimium wage $2.13 an hour of $42.60
That adds up to $93.00
Federal minimum wage guarentee is $5.15 an hour.
So total wages for 20 hours would have to be $103.00
So the employers would have to make up the additional $10.00
Federal law:
Workers Who Earn Tips
Employers who allow workers to keep tips must pay a cash minimum wage of at least $2.13 per hour IF they claim a "tip credit" against their federal minimum wage obligation of $5.15 per hour. In other words, if your tips plus cash wages do not equal at least $5.15 per hour, your employer must make up the difference
2007-01-31 16:01:11 · answer #2 · answered by jeeper_peeper321 7 · 0⤊ 0⤋
A server's minimum hourly salary is severely decrease than different workers by using fact the expectancy is that servers get rewarded from their information. So a Walmart worker makes extra according to hour in revenues than a server. additionally many people are unaware that eating places are additionally required to estimate a server's information alongside with their paid revenues from the eating place and contain this volume interior the W-2 varieties sent to the IRS and the server. So in the event that they actually don't get a tip, they might finally end up paying taxes on money they did no longer even earn.
2016-12-16 18:11:43 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Not out in Canada they do? l know of some waiters they make at least $10 bucks an hr. in Niagara Falls Canada they make about $10 to $12 dollars an hr.
2007-01-31 15:52:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
My neice is a waitress. She has no problem with the tips she makes daily. She averages over $200 a day in tips. Over $1000 a week. She works hard or those tips, and her work check just gets shoved in the bank!
2007-01-31 15:55:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Its legal because your salary is made up from tips,and most places add a tip into the meal....thats how they get away with it,it is basically a tip making job....
2007-01-31 16:09:21 · answer #6 · answered by slickcut 5 · 0⤊ 0⤋
because if their salary including tips is not greater than minimum wage, their employer is required to make up the difference.
2007-01-31 15:52:20 · answer #7 · answered by WJ 7 · 0⤊ 0⤋
yeah they should be put on salary like farm laborers $750/month now that all the illegals have been sent home. I wonder how much that is an hour?
2007-01-31 16:00:52 · answer #8 · answered by Anonymous · 0⤊ 0⤋
i know its stupid... hair dressers make above minimum wage and still get tips.. same as door people and stuff.
2007-01-31 15:50:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋
it wasn't legal, would resturants be doing that, so then it must be legal. it also depends on what resturant you work too.
2007-01-31 15:49:55 · answer #10 · answered by krynmusic 3 · 0⤊ 0⤋