Why don't servers just get paid a decent hourly wage. This way they don't have to depend on tips?

Question

I don't understand why the industry just doesn't pay their servers a decent hourly wage instead of leaving them at the mercy of the patrons pocketbook. Wouldn't this be a better solution?

Answer 1

Actually the new minimum wage law just passed.... therefore by 2009. If the hourly wage of servers + their tips do not = The amount you would make for minimum wage for those hours, the employer must make up the difference..

Say thanks to congress =]

Answer 2

If tips went away, the FIRST people to scream would be the wait staff in many cases. Fact is, in prime properties, wait staff and bartenders make a huge amount of money from the tips.

For the management, the benefit is that the payroll burden stays low enough that they can get through the slow times. And in good times, the server gets the benefit in the form of tip income and the management gets the benefit in terms of increased productivity.

Something for everyone. And, yes, the above has a fair amount of "theory" in it so the "mileage will vary", for particular cases.

But what about the "not so prime" properties? It is here that the operation of minimum wage laws comes into play. The sum of tips and wages must equal or exceed the minimum wage. That still puts staff at those locations below their counterparts at the fancy places -but everyone who waits tables or tends bars knows which is which; and, if you opt for the high-end, you'll WORK for that money.

And that leaves the "sub-prime" places, such as McD's and those were "no tipping" is allowed. People working there are going to go, for the most part, in one of two directions: 1) Its only a temporary job while they're in school or waiting for something else, or, 2) they want a shot at management, where the big bucks are.

So, the labor force for the industry has pretty well sorted itself out, the system is entrenched, works reasonably well, and is not likely to change. No one has yet come up with a more practical plan.

I hope this helps explain it.

PS: And by the way, "TIP," does not mean "to insure prompt service." the word itself has for many 100's of years meant: "to give." See this: http://en.wikipedia.org/wiki/Tip

Answer 3

The industry has been operating this way for an awfully long time, and it is hard to change horses midstream.

I don't know if you realize, however, that according to the Federal Minimum Wage regulations, the establishment must "make up" any difference between the "base" wage PLUS tips to equal the minimum wage. This is why servers are REQUIRED to report their tips EVERY SHIFT.

Set this example up... the numbers aren't exact, but the concept is:

The server works 3 hours. Her base wage is $3.00/hr. Therefore her base wage for those 3 hours is $9.00. During that shift, she collected $15.00 in tips.

Say, the minimum wage is $7.00/hr, therefore the minimum wage for those 3 hours is $21.00.

Her base wage of $9.00 plus the $15.00 tips equals $24.00. Therefore, she earned over the "minimum wage" base for that shift.

Had she collected less than $12.00 in tips, then the restaurant would have to have added the sum to equal the $21.00 "minimum wage" base.

So, you see, according to THEORY... ALL WAIT STAFF, at least in the USA DO earn AT LEAST Minimum Wage for their hours, regardless of how much tips the person collects.

Oh, and the "Minimum Wage" is SUPPOSED to BE the "decent hourly wage" you are referring to, yes?

Have a great day!

Answer 4

There is not a whole lot of profit to be in the average restaurant. Increasing the wages of the waitstaff would put most places out of business. Also, tipping is at your discretion. Think of it as an incentive for good service. If the service is poor - your server will be!

Answer 5

I agree with you and after reading some of the other answers, I don't think I feel quite as sorry for the people that choose to work in the food service industry. If I understood correctly, they ARE making at least minimum wage, contrary to what they keep telling the "bad tippers" in this forum............

Answer 6

TIPS means "To Insure Proper Service". The reason that "the industry" doesn't just pay the extra, is because they would have to charge more, and without the TIPS, there is no insurance that the waitstaff will not do their absolute best to keep the customers happy.

Answer 7

its different from state to state. in cali and washington its min wage regardles of tips. ther states have lower wges for tip earning jobs.

Answer 8

i agree, i feel bad with all those cheap stingy people who look for every excuse as to not tip. if u cant afford to tip then go to a drive thru! i think people were just raised poorly.