Comment by bruckie
21 days ago
Yes, it's pretty common. It's also common for businesses where customers tip to underpay their employees on the expectation that they'll make it up with tips. It's legal to do this in many jurisdictions.
As an American, I wish we didn't do this, but it's a collective action problem that's very hard to solve.
What exactly is the definition of "underpay" here? Back when my wife was a server, it seemed like a cheat code to the service industry - she was making way more money waiting tables for $2.65/hr + tips than she had made at any other job she'd had (something like $18-20/hr 15 years ago)
> What exactly is the definition of "underpay" here?
> $2.65/hr+
Are they agreeing to pay employees one amount, then underpaying them? Why would an employee keep working if they don't get paid the agreed-on salary?
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In college I worked at a Chili's and made anywhere from $15-20 an hour in a busy location, which was decent wages for a college student at the time.
Correct. bruckie has never actually worked as a server; otherwise he would know that tipping in the US is hugely beneficial to waiters, bartenders, etc., even with the legally allowed lower minimum wage. This is why tipping has never gone away through legislative means despite no shortage of waiters and bartenders in the populace, and why the occasional restaurant that proudly announces that it is a "no-tipping" establishment, and gets the requisite amount of slavering coverage in the usual virtue-signaling subreddits, never stays open long.
My dislike of tipping isn't to help the "poor servers" (and other employees partially compensated via tips). You're correct that I've never been a server, but I've had several friends and roommates who have been, and I'm aware of how it works. The good ones make (relatively) a lot of money; the bad ones sometimes don't, and usually find a different job pretty quickly. (I totally see how mentioning the lower minimum wage muddled my point, though.)
The reason I wish we didn't tip is because I think the list price should reflect the true cost of whatever I'm buying. I think that is more honest, encourages healthy competition, and is a pleasant consumer experience.
I was really glad when the DOT forced airlines to include taxes and fees in ticket prices in 2012, and wish there were a similar law/regulation that applied to all commerce. (And yes, I realize this is hard, given the incredible complexity of U.S. tax laws in a bazillion different—and often overlapping—jurisdictions.)
One thing that annoys me is that some states, like California, don't have a tipped minimum wage. (Well, we do, it's just set to the same number as the non-tipped minimum.) And yet we're still expected to tip. I guess the real problem is that it's expensive to live in CA, and our minimum wage needs to be hiked up quite a bit.