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by mindslight
1245 days ago
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This sounds like straight up employee misclassification and wage theft that should be taken up with state regulators. Surely a fast food place like McDonalds can't just put a tip jar on the counter, play coy that their workers are tipped positions, and underpay their employees. So it's a matter of enforcement on the smaller outfits that are able to fly under the radar. I don't want to completely wash my hands of it because it's certainly possible the state regulators could be corrupt and just ignoring the problem, but just giving in to the corruption doesn't seem right either. |
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So the employee has to record their tips (often but not always, in the same computer system they record their hours) and make sure their employer correctly compensated them for the shortfall between actual earnings and minimum wage.
Minimum wage laws basically says “Every employee must make the minimum wage when tips and employer payments are combined. Also, employers must always pay at least $2.13/hr (federal) regardless of amount that is earned in tips.”
The “real” issue is that $2.13/hr combined with averaging earnings over a paycheck leads to very very mismatched incentives for a business deciding what hours they should be open. The business has very low marginal cost so they’ll stay open during hours when it’s not profitable to the laborers because not enough customers ever walk in to make them minimum wage during those extra off-peak hours.