Published January 23, 2015

A Look at Tipping and the Minimum Wage

Many people are surprised to find out that servers have a starting salary of under $3.00/hour in many states, even though the federal minimum is $7.25. This is still going on today. Tips are supposed to balance out the low wages, but in many locations that’s barely enough to get by.

A video called “The Tipping Point” was posted over at Shiftgig and it’s an eye-opening look at what life is like for actual wait staff and bartenders working for sub-minimum wage.

One man in the video talks about how he might make $80 in tips on a busy Saturday night, but only $20 on a weekday and end up making less than the federal minimum. Employers are required to pay the rest up to the minimum as a tip credit, but this is often unregulated and wage theft is common.

Studies show that you’re more likely to live in poverty if you earn a tipped wage. Servers sometimes see zeros on their paychecks because their wage isn’t even enough to pay taxes, so they live on tips alone and rely on free meals at the restaurant they work at.

Another problem with tips is that they’re often based on appearance, and how much you make is entirely up to the judgment of the person tipping. Most female servers experience some kind of sexual harassment but are forced to let it slide because they rely on that money.

While restaurant lobbyists fight against higher wages to keep their profits high, taxpayers pay the rest in the form of food stamps and other government support for underpaid workers.

If restaurants paid their staff a living wage and eliminated tips, everyone would benefit.

See the video here: Living the Tipped Life Isn’t Always So Great. This Video Really Shows Why
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