Hacker News new | ask | show | jobs
by filoleg 928 days ago
> They used tips (and may still use tips) to refund themselves for the minimum pay offered to dashers.

Not trying to make a stance one way or another, just wanted to make sure I understand what you meant by this correctly.

Is what you are describing essentially the same way it works in the restaurant industry for waiters/servers?

TLDR: waiters/servers in the US typically have a base pay that’s below the minimum wage, but they get to keep all the tips. However, if a waiter/server at the end of their pay period makes less with their base pay+tips than what the minimum wage for the area would be, the employer is legally on the hook for making up the difference to the employee.

2 comments

It would seem to be the same - but also restaurant workers likely don’t hit the minimums frequently, since the kitchen would probably be unprofitable to run in settings where front of house are only making $3/hr.
> TLDR: waiters/servers typically have a base pay that’s below the minimum wage, but they get to keep all the tips. However, if a waiter/server at the end of their pay period makes less with their base pay+tips than what the minimum wage for the area would be, the employer is legally on the hook for making up the difference to the employee.

I believe that's the federal rule, but several states with higher than federal minimum wages have a uniform minimum wage for tipped and non-tipped workers. If I'm reading the chart correctly[1], those states/territories include Alaska, California, Guam, Minnesota, Montana, Nevada, Oregon, and Washington.

[1] https://www.dol.gov/agencies/whd/state/minimum-wage/tipped