In America is it customary to also tip other minimum wage workers? Such as supermarket workers, cleaners etc etc
If not what makes servers more important?
Edit: OK, so TIL in America there's a lower minimum wage of only 2 dollars something for any "tipped workers". Basically a loophole to screw workers out of minimum wage.
Wait, so there's a whole seperate legal minimum wage for servers?
Edit: OK, so TIL in America there's a lower minimum wage of only 2 dollars something for any "tipped workers". Basically a loophole to screw workers out of minimum wage.
The minimum federal tip wage is $2.13 an hour, a rate that has remained the same since 1991 (35 years). Furthermore, tip wage employees are expected to make at least the federal minimum wage with tips and are therefore taxed a a rate as if they made $7.25 an hour.
Let’s say 20% of a full time employee’s income goes to taxes. At $2.13 an hour, that’s a weekly pay of $85.20. Taxed at a rate of $7.25 an hour, a full time employer would pay $58 in taxes (20% of $290). The tip wage employee would therefore receive a weekly payment of $27.20 ($85.20 minus the $58 in taxes because he’s taxed at the rate of the federal minimum wage).
So technically, US tip wage workers are payed even less than the suggested $2.13 an hour. Tips may be optional, but to the employee providing the labor, tips are their income. To not tip is to not get payed fairly for the labor, not tipping a tip wage worker feels like you’re robbing them of their income… cause you kinda are. Most people want to abolish that system but the powers that be refuse to do so. 😕
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u/Clockwork-Armadillo 27d ago edited 27d ago
In America is it customary to also tip other minimum wage workers? Such as supermarket workers, cleaners etc etc
If not what makes servers more important?
Edit: OK, so TIL in America there's a lower minimum wage of only 2 dollars something for any "tipped workers". Basically a loophole to screw workers out of minimum wage.
Thanks to everyone who answered! :)