|
|
|
|
|
|
by xenocyon
2517 days ago
|
|
|
Firstly, restaurants are not allowed to pay "less than minimum wage" in any US state, though some states have two separate minimum wage rates for tipped and untipped employees. (NB: all west coast states in the US have just one minimum wage that applies for all employees, tipped or not.) But more fundamentally Instacart and Doordash deceived consumers in a way restaurants don't. Say minimum wage for tipped employees is $4, a restaurant pays a $5 wage and I tip $2, I expect that the staff gets the $5 wage and the $2 tip (whether pooled or otherwise). If the restauranteur uses my $2 tip to cut wages below $5, then that would be illegal and outrageous. The minimum wage amount of $4 does not even enter into the calculation in this example, except defining the floor for the restaurant to pay its tipped employees. |
|
|
This is a difference without distinction. It is the separate minimum wage for tipped employees which allows the restaurant to pay less than the minimum wage. If the tipped employee minimum wage is $A and the untipped employee minimum wage is $B, and the tipped employee earns $C in tips:
The restaurant must pay $A. If $A + $C < $B, the restaurant must pay $B -($C + $A) more so the employee earns $B. Else, the restaurant doesn't have to pay anymore.
That's exactly how DoorDash works. They pay $1 (equivalent to $A), guarantee another amount (equivalent to $B), and if $A + $C < $B, they fill in the difference.
> But more fundamentally Instacart and Doordash deceived consumers in a way restaurants don't.…
How so? They operate exactly as restaurants do in tipped employee minimum wages states in regard to tips.