[lbo-talk] tipping and control

Bill Bartlett william7 at aapt.net.au
Wed Nov 20 11:44:37 PST 2013


On 21/11/2013, at 2:00 AM, Andy <andy274 at gmail.com> wrote:


> It's worse than that. Waiters have by law a lower minimum wage:
>
> […] Some types of labor are also exempt: employers may pay tipped
> labor <http://en.wikipedia.org/wiki/Tip_%28gratuity%29> a minimum of $2.13
> per hour, as long as the hourly wage plus tip income equals at least the
> minimum wage.

Amazing. So if people just stopped tipping, the employers would be required by law to pay higher wages.

I expected that if not for tipping, simple market forces would force higher wages. No-one could live in the USA on such low wages, so employers would need to pay more to attract staff. Its basic economics. I didn't expect that it would be so blatant.

Bill Bartlett Bracknell Tas



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