The federal minimum wage is set at $5.15 per hour. However, for food/beverage servers eligible for tips, this minimum is allowed to be set at
$2.13 - $2.33 an hour! In theory, gratuities should make up the difference...Right...
WRONG!
The problem is: That the amount of the tip rests solely on the discretion of the customer. And, the server is the only party in the transaction at risk.
When a customer pays a $100 dollar tab, the owner of the establishment is guaranteed his profit margin. The owner will then deduct 3.5- 4.5 % of the tab from the server to spread among the non-tipped employees. So, in effect, the busboy is guaranteed a tip. Finally, the I.R.S. will assume the server got a tip of 12.5%, so they’ll take their money accordingly.
What if, for any reason whatsoever, the customer decides to throw down $4.00 for the server tip? You do the math! The owner has his money, the busboy has his money, Uncle Sam has his money, and the waiter is in the hole!
It is also given that restaurant employees including managers are not allowed to discuss gratuity with their guests because it may offend them. Restaurant owners are all against questioning guests because they may go elsewhere. But at the same time, they are not doing anything to educate their guests. And those that don’t tip have all the laws backing them up. Any law in any state does not mandate tipping. Always Remember that the paychecks restaurant servers get every week equal $0.00 dollars as all of it goest to FICA, State, and Medicare, Therefore they rely on the tips from guests to pay their bills and live their lives.
IS A SYSTEM THAT ALLOWS THIS TO HAPPEN, FAIR?
