[baby]

I think the other thing is that the US can hire people for very cheap (like 2$/hour) with the idea that maybe the actual customers can contribute to the worker's salary to make it up. Often you need to get another job to reach a living wage. It's a great way to enslave people and get good unemployment numbers.

[loeg]

You're describing so-called "server wages," which only apply to businesses with tipped employees (and do not apply in the seven "equal treatment" states, including California and Washington). I don't think it makes a huge difference in total unemployment numbers, because tipped workers represent something like 2-3% of all US workers.

(I agree that the concept of server wage is pretty awful and should be eliminated as a matter of policy.)

[baby]

Why do people tip in California if that's not a thing then?

[loeg]

You would have to ask them. But one plausible reason would be that they might think service is worth more than the state minimum wage.

[flavius29663]

Servers prefer being tipped rather than getting a higher minimum wage. They can make 20-30 an hour from tips, good location ones even more. https://upserve.com/restaurant-insider/impact-minimum-wage-i...

This is an interesting take: with the idea that maybe the actual customers can contribute to the worker's salary

The customer always contributes to worker's salary

[loeg]

Some portion of servers also prefer cash tips because it enables illegal tax evasion, which increases their effective take-home income.