There’s technically two different rates employers are federally required to pay. First there’s the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to “encourage a more competitive market for smaller businesses,” while still ensuring workers make at least the minimum.
Wait so they get paid less than the minimum wage? What’s the point of minimum wage if they have to make up for it with tips?
No point. It is purely symbolic.
There’s technically two different rates employers are federally required to pay. First there’s the standard $7.25/h. The second is for workers that receive cash tips. Employers are allowed to pay said workers as little as $2.13/h so long as their tips and their regular wages work out to $7.25h. If the employee’s gross pay works out to less than $7.25/h, then the employer is obligated to make up the difference. The idea, I presume, is to allow some wiggle room to “encourage a more competitive market for smaller businesses,” while still ensuring workers make at least the minimum.
Fucking braindead…
Yes. One of the many reasons I say we need a UBI.