Why don’t food servers go on strike or demand higher wages? like unions and teachers do?
Why do Americans encourage employers to pay servers below the minimum wage of $9/hr (new Obama rate) by supplementing their income through tips?
do food servers really want to work for less than minimum wage?
do they want to work for $2.13/hr + tips or work for $9/hr with no tips?
How come there is no food server outrage minimum wage reform?
http://www.dol.gov/whd/minwage/q-a.htm
Key point many people miss: The federal minimum wage is $7.25/hour. Period. There are selected exceptions. Being a tipped employee is not one of those exceptions. Instead, the employer is only required to pay tipped employees a direct minimum wage of $2.13/hour because tipped employees are assumed to make up the difference. As stated above, if an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference. (Bolding mine.)
It’s my observation many tipped employees are unaware of their rights and the law, are intimidated by their supervisors, and/or lucky to have the job. Going on strike to exert one’s rights is actually a sophisticated decision many are unwilling to make because a failure to prevail means you are out of a job.
Obama has proposed a higher minimum wage. That infers the direct wage rate for tipped employees would also go up.
Well, many servers in pricier restaurants actually make much more from the tipping system than they would at minimum wage with no tips. And many servers making minimum wage or below don’t have a whole lot of clout to change the system.
Some, however, are starting to mobilize, beginning with pushing just to get existing laws properly enforced. Apparently some nonprofit runs Restaurant Opportunity Centers to help restaurant servers stand up for their rights:
When I worked for tips I made 2.13/hour in wage, about $30/hour in tips, and paid taxes on around $11/hour. (Wage + credit card tips).
Why on earth would I have traded that for the $6/hour or so then-current minimum wage? Even if it was dead and I sat in the empty dining room watching movies all afternoon I still averaged out way ahead of the game.
As a restaurant patron, I see better service when the servers are working for tips. I was recently on a cruise ship where servers got a standard wage including a mandatory up front gratuity we paid to cover all such employees. Service was spotty at best.
I’ve travelled a lot including many places where no gratuity was expected. The service just does not compare. Here, the server has lots of incentive to pay attention, bring food and beverage promptly, etc. This encourages the diner/drinker to actually buy more and to reward the server with a better tip.
Simple.
It should be noted that, while this is a common practice, it can bite you in the ass. And it doesn’t really help your case to promote tax evasion as a perk of being a tipped employee. Of course cash tips can’t be tracked. But failing to claim all your tips also has negative repercussions down the road… claiming lower wages has a direct impact on the lines of credit you’re qualified for. It also decreases the amount of social security to which you are eventually entitled.
Most servers don’t demand higher wages in exchange for no tips, because it would be a pay cut. Back when I was a server, I was making 500 to 600 a week on tips alone, and only working 30 to 35 hours a week. I would have had to make $20/hour to make that much as a regularly paid employee.
This wasn’t an expensive restaurant either. Our lowest priced meal was $5, the highest was an 8oz steak with 2 sides at $15.
I wouldn’t worry too much about the food servers in restaurants who serve multiple customers per hour and get mandatory tips from large parties.
What needs to be addressed is the fact that pizza delivery drivers make less than minimum wage, generally serve one customer at a time, incur the unpaid expenses of additional cost of insurance, double what others pay if they can even get insured properly at all, spend more than twice as much on tires, oil changes, and tons more on car maintenance, and if gasoline goes up in price the amount they get paid for the gasoline stays the same. And half of all customers (or more) do not tip anything at all, and some think the delivery fee (which pays gasoline only) is the driver’s tip.
I’ve stated this several times before, but here it is again. Food servers in restaurants get tipped more and don’t have those additional expenses, and serve more customers at one time.
NETA: Well, it needs to be addressed if you folks want pizzas to be delivered to your house in a timely fashion. Otherwise you can keep getting part time teenagers with no work ethic delivering your food slowly because they have no incentive whatsoever to get it to you quickly. More trips per hour but no tips means the driver actually loses money on every run.
For me, the point is why am I as a customer expected to directly supplement the servers’ income so that they can earn minimum (let alone living) wage. Here’s an idea. How about if the employer pays their employee the wages and then tip are above and beyond that. Can you imagine if a cable installer or auto mechanics only got $4 per hour and you were expected to make up the difference out of your pocket AFTER paying the bill?
Because they’ll be fired.
There is no “new Obama rate”. There is a proposal to increase the federal minimum wage, nothing more. I imagine most Americans don’t want to stiff their servers because they don’t want to look like assholes.
Now, can we skip to the “gotcha”?
Ok, let’s play what-if: Restaurant owners are now required to pay wait staff about 3x what they currently do.
How do we think that will impact the restaurant’s bottom line? What will the owner do to offset that cost?
In fact, if you look at the actual laws, it’s not so much that the employer makes up the difference, but rather the employer cannot claim a larger tip credit than actual tips.
From http://www.dol.gov/whd/regs/compliance/whdfs15.htm:
Basically, if the employee works 40 hours and makes $40.00 in tips, the employer can claim a $1.00/hr credit. What the dishonest employers are doing is claiming a $5.12 tip credit, even if the server didn’t make $5.12/hr in tips.
Also note that employers are not allowed to take a tip credit at all if they haven’t informed their employees of the key points of the law.
While I don’t like the tip system, I do it, but I don’t think that should absolve employers of their responsibility to compensate their employees. My tip is a bonus, the employer’s wages shouldn’t be based on that.
As to the costs, they already are passed on to me. I already have to pay ~$20 for that $15 meal, I see no difference in paying $20 for an $17 meal instead. My tips are a bonus and should not let employers out of their responsibility for paying their employees fairly.
Because there about a million teenagers looking for jobs that can replace them in less than a second.
That’s funny considering the bullshit one has to go through for a minimum wage job. And waiting tables is a step up from that.
Seriously, people have to take personality test, pass background checks and submit references just to work at Subway. Waiters usually have to have experience and memorize the menu in addition to all that. If you were right you’d expect more teenagers to wait tables. I find that it’s usually college kids and older, however. The unemployment rate for teenagers is over 25%.
Raise their prices 15% or so. Customers are no longer expected to tip, so they break even. Servers are paid minimum wage or more based on merit just like everywhere else.
Oh goody! Another tipping thread. We’ll resolve it this time for sure.
Carry on.
Wow, common sense. Unfortunately, think of who your plan benefits and who is in charge of making these decisions. It will never happen.
Common sense if you want crappy service.
I like the current system, and have no problem with tipping. Apparently, the servers like this system, too. All you Mr. Pinks out there will have to suck it up!
Exactly. It’s weird how people underestimate the logistical problems cause by a full labor strike. Even McDonald’s couldn’t replace all their employees with comparable people in any short period of time.
That said, not all waiters are paid $2.13. Some states don’t have a tip credit, so those tipped employees get the state minimum wage (eg. California, Montana, Nevada, Oregon, etc.). I don’t think food is that much more expensive in those states, so I guess the restaurants eat the costs for the most part.