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by alistairSH 2687 days ago
In the gig economy, that $5/hour adjust minimum might not exit (because it's not regulated), so the scenarios becomes...

Made up example: Employer-stated hourly rate: $10/hour Tips per hour: $9/hour Actual pay: $10/hour ($9 tips + $1 pay) Tips per hour: $3/hour Actual pay: $10/hour ($3 tips + $7 pay) And in the very extreme case... Tips per hour: $11/hour Actual pay: $11/hour ($11 tips + $0 pay)

By avoiding the minimum wage, and backfilling wages with tips, the employer can theoretically avoid paying ANY wages to employees (and I'm specifically calling them employees here because I believe most of these gig economy jobs should be employees, even if not legally required to do so).