This is something I was not aware of, when the feds started taxing tips, say 20 years ago, and required restaurants declare those to the IRS, the restaurants were able to argue tips should be deducted form minimum wage. Here is family restaurant chain Dardens...
One thing I recall from working in foodservice in my youth was the esprit de corps. It did not pay real well, but it was fun. And we learned a lot. Those who really busted their hump were the waitstaff, and so they earned heir tips. This new thing of tip-sharing to meet minimum wage will wreck the esprit de corp and the small and medium size restaurants.
More subtle damage done by minimum wage laws!
Feel free to forward this by email to three of your friends.
And last year, the company also put workers on a "tip sharing" program, meaning waiters and waitresses share their tips with other employees such as busboys and bartenders. That allows Darden to pay more workers a far lower "tip credit wage" of $2.13, rather than the federal minimum wage of $7.25 an hour.
One thing I recall from working in foodservice in my youth was the esprit de corps. It did not pay real well, but it was fun. And we learned a lot. Those who really busted their hump were the waitstaff, and so they earned heir tips. This new thing of tip-sharing to meet minimum wage will wreck the esprit de corp and the small and medium size restaurants.
More subtle damage done by minimum wage laws!
Feel free to forward this by email to three of your friends.
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