Economic analyst and former tipped worker David Cooper explains how tipped workers get paid. The minimum wage for most tipped workers is only $2.13 an hour. That means the customer is on the hook for paying the bulk of these workers’ wages.
The federal minimum wage for tipped workers has been $2.13 since 1991. That pay rate tends to get lost in the larger debate over whether to raise the national minimum wage for nontipped workers, which is $7.25 an hour. Under federal law, if tips dont bring employees up to the level of the standard minimum … Continue reading
There’s a Kentucky restaurant that has completely abolished tipping, and contrary to what you might expect, it actually looks like it might be great for their servers. Since Packhouse Meats restaurant in Newport, Kentucky opened in January, its had signs posting everywhere making clear that tips are not part of the transaction process. The credit … Continue reading
Most of the tests described below were conducted in casual, mid-scale to downscale dining establishments, simply because it’s harder to get permission to run experiments in higher-end restaurants. If you work in a fine dining atmosphere, use your own common sense to see what is appropriate to try in your workplace. If you’re not a … Continue reading