How do restaurant owners get away with paying waitress less than minimum wage?Is that fair?

Question

How do restaurant owners get away with paying waitress less than minimum wage?Is that fair?

Answer 1

They get away with it by including the tips they get paid into their paychecks as taxable income meaning they pay tax on their tips. but no it is not fair.

Answer 2

Legally they don't actually pay them under minimum wage. The employee is able to get at least minimum wage.

If (including tips) the waiter/waitress isn't making at least minimum wage, per hour, they are able to go to their employer and the employer will HAVE to pay them to make their hourly wage equal to whatever the minimum wage is

Answer 3

The same way that the waitress/waiter doesn't report the real amount earned in tips for taxes.

Answer 4

Legally, it is legit. There is a special minimum wage for tipped service workers that the restaurant is obligated to pay each employee per hour. For example's sake, let's say it is 3.00/hr (that's what it was when I was a server/bartender). This rate is set lower than minimum wage based on the assumption that you are making tips during each shift you work.

So, for example, let's say you worked for 8 hours one day, and made $100 in tips. So, you would have your 100$, plus your $ 24 from your hourly wage.

If for some reason you made no, or very little money during a shift, your employer must add the difference to your paycheck to make sure you at least receive REGULAR minimum wage. However, this amount is usually calculated  by pay period, not each day, so the days you make really good tips usually even out the bad days as far as paychecks go.

More often than not, your paycheck/ server hourly wage serves to cover your taxes. It is not uncommon to never really receive a check, whcih means all your hourly is going towards your taxes.

Some restaurants offer a higher hourlyto their waitstaff, but this is simply up to their discretion. Legally, they are not obligated to do this.

Answer 5

Because waitstaff generally make tips. As a server, I would rather make a higher hourly rate in lue of tips (tips aren't guaranteed so you always have a fluctuating monthly income), but the menu prices would all be much higher to compensate for the fact that the restaurant is now paying all the servers a much higher hourly rate. So theoretically restaurants would not generate much business because the food would cost about three times more than it is, and then they couldn't afford to stay in business and pay their employees.

Answer 6

They don't.  Tips are supposed to make up the difference between what the wait staff gets paid by the owner and what the waiter actually takes home.

If the tips and the wage together are below the minimum wage, the owner must kick in more money to equal the minimum wage.

Answer 7

Don't most wait staff get paid mostly off of tips?

Answer 8

they are able to do this because waitress get tips. its supposed to equal out.

Answer 9

It's legal, not sure if it's fair or not...maybe. But, that is why you should always tip your server very well...I never do less than 20% unless the service is awful...and often times tip much more...it's a tough job on many levels (not that I'd know first hand, lol, cause I'd drop stuff, mess up orders, and probably generally tick people off with my lippiness ;)

Answer 10

get a union...Usually in the restaurant business they rip you off.. All your staff should stand together and get a union to represent you and fight for your rights.

Answer 11

not fair..but legal...

Answer 12

its because of the tips. they can factor in the tips so that will be closer to minium wage

Answer 13

It may or may not be fair, but it's completely legal.  In many states they can also charge them for a meal, whether they eat it or not.  Speaking as someone who has worked as a server, my pay check was just mad money -- I lived off the tips.

Answer 14

Most waitresses are paid less than minimum wage because they receive tips on a daily basis.  It's completely legal.

Answer 15

Yes,now how many waitress's go to the ower and say that?NONE i know of becaue they feel eventually someone will come in to make up the difference.

Since min.wage just went up 70 cents today should be interesting.I do know we live at the beach and less and less people are going out to eat.The restaurants that normally had huge waiting line you can get into now and not even every table is seated.

I almost died the other night at CHILIS the 6 top sitting across from us got CHANGE back and the girl said I want the quarters out of it.So,the guy says Ok i leave a dollar pick up the change.....I was ready to follow them to the bathroom and deck it out for the waitress myself.

she gave them food on time and did refills...

people are pathetic.