• Aum@lemmy.world
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    1 year ago

    Wait so they get paid less than the minimum wage? What’s the point of minimum wage if they have to make up for it with tips?

    • JonDorfman@lemmy.world
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      1 year ago

      There’s technically two different rates employers are federally required to pay. First there’s the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to “encourage a more competitive market for smaller businesses,” while still ensuring workers make at least the minimum.

      • cedeho@feddit.de
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        1 year ago

        The second is for workers that receive cash tips.

        Fucking braindead…