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Amazon shortchanged drivers $61.7M in tips

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Re: Amazon shortchanged drivers $61.7M in tips

#111
post #44

> The FTC alleges Amazon changed the way it paid drivers in late 2016, lowering the hourly rate and then used customer tips to make up the difference. Amazon continued to tell drivers they were receiving all of their tips, even after receiving hundreds of complaints from drivers, the agency said. How is this not simply theft? Why does this attract civil charges and not criminal ones?

Not arguing one way or other, but for many, say, restaurant workers, this practice is the norm in states that allow it (I believe that would be most states). The amount the owner is required to pay a worker is pretty low, as long as they have enough tips to hit the standard minimum wage.

Perhaps somewhat ironically, Washington state requires restaurant workers to be paid the normal minimum wage regardless of tips.

(No clue if they played whatever semantic games in their home state or not. I assume so, but it wasn't clear to me from the article)

Re: Amazon shortchanged drivers $61.7M in tips

#112
post #9

Just do away with tips. It's a terrible and stupid system. If you want to do it as a customer, go ahead, but it should never be considered as part of the employee's compensation. If people aren't willing to do the job for the hourly wage alone with no tips, raise the wage until they are.

Tips are fundamentally broken. If you didn't know about tips, and someone offered you a job and said, "I'll pay you crap wages, but you can ask the customers for more money. Don't worry, they'll pay or their friends won't like them," you'd think it was a scam because it's such an obviously terrible deal.

Tips are an awful way to incentivize good service.

I'm neither qualified to judge my server's performance, and I've got very limited and potentially misleading information about what a reasonable expectation is. I've got no idea what small crises my server had to deal with, or how other customers are treating him.

And because tips are everywhere now, nobody knows the going rate for most tips. Obviously tourists have no idea how much to tip.

If I reduce the tip, the waiter is only finding out that I was unsatisfied after it's too late to fix anything. But tipping up front makes the exercise entirely pointless.

And the moralizing of tips is stupid.

Many moral arguments paint people in the service industry as paupers or victims, but a basic level of respsect has to assume they're competent professionals who chose this line of work.

A tip is not an act of generosity, either, you're paying a fee for a service rendered. And that's why, as a system, the morality of tipping is entirely backwards: it rewards people who rip off their servers.

The thing that really bothers me are the awful motivations behind tipping: being control freaks, conspicuous consumption and all the slimy business incentives to push their payroll onto their customers.

Re: Amazon shortchanged drivers $61.7M in tips

#114
post #89

Earlier quoted context omitted.

There's actually no incentive to keep low paid service jobs for any length of time. One of the saddest things in retail for example is the longer you work, the less you actually make; retail pay is so low that your raises will be less than inflation adjusted minimum wage or new hires if you work at a job long enough! I've seen/had this happen. Bosses had to go to bat for their long term workers because even with rais…

While that does sound like a problem do you think that tipping would fix it?

I don't think it fixes i would say, but more likely people wouldn't waitress for very long then, just like they don't stay at stores or other service positions for every long. Part of the reason tips work is that those restaurants wouldn't pay close to what the servers make otherwise. They'd end up giving them $10 an hour with a 25 cent or 35 cent raise every year.

It's really low. I've worked in a place where people will literally throw away money equalling an hours worth of the wages of a service person into a pool of water for good luck.

Re: Amazon shortchanged drivers $61.7M in tips

#115
post #9

Just do away with tips. It's a terrible and stupid system. If you want to do it as a customer, go ahead, but it should never be considered as part of the employee's compensation. If people aren't willing to do the job for the hourly wage alone with no tips, raise the wage until they are.

I'm kind of intrigued by the opposite idea: extend the system of tips to everything . I'd gladly add a tip to many things I buy if I knew that it would go entirely to the workers and not one penny would go to the owners, managers, or executives. Tips are a kind of direct income redistribution. If I think someone deserves more money, I can directly give it to them. There's no middleman, no politics, and no stigma abou…

People are by and large terrible. They are stupid, incompetent, their own worst enemy, rude, degenerates.

They expect to behave like assholes and expect customer service to kiss their asses.

Furthermore they are regularly in a semi adversarial relationship with staff because empowerment to help out creates the power to give customers things that may contextually make sense situationally one off but be profit destroying if used broadly.

This means that I can corruptly earn more by giving away the store for example.

You may be nice and courtesious but making everyone in every case dependent upon assholes for their daily bread will work only if you can reform the human race first.

Re: Amazon shortchanged drivers $61.7M in tips

#116

Earlier quoted context omitted.

Apart from other responses pretty much disproving this, consider which people you're rewarding. Not every place will share the tips with cooks / dish washers / owners / etc. It actually causes conflicts in those places (don't share -> kitchen hates front staff; share -> front staff hates kitchen).

The people who steal the difference between a living wage and a tip-subsidized wage? Subsidized by us, who pay twice?

> The people who steal the difference between a living wage and a tip-subsidized wage?

The people who could "steal the difference" are usually the owners, right? Not sure why GP put the owners and kitchen staff in the same bucket.

From my experience as a client in bars (without actual kitchens) in Paris, France, where tipping "isn't expected but kinda is" [0], most of the time tips are split between wait staff. So I kind of get the issue that if some waiter is going above and beyond and is nice / helpful / quick to serve / etc, whereas a colleague will do the bare minimum, when someone tips, this is diluted.

As a client, I'm tipping X for the service, but this particular waiter will only get a fraction of that, the same as his low-effort colleague. I'm not really OK with that.

Most places I usually go are rather small and the waiters seem comparable, so I guess it's not usually an issue I have in practice.

However, there are other, usually larger places where quality of service varies much more, and I'm usually much less inclined to tip in those places. I've also heard from bar staff having worked in such places that there indeed is more tension between staff, along the lines of "so and so just waits around / doesn't do anything". Wouldn't be surprised that the complainer wouldn't be all too happy to split their tips in such a case.

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[0] Technically, in France, prices are "all-inclusive", that means service is already included in the price, so you don't have to tip. However, at least in bars around Paris, I've noticed that it's somewhat expected to get a tip, especially when clients are considered "difficult" (though I'm unable to exactly quantify that).

Re: Amazon shortchanged drivers $61.7M in tips

#117
post #26

Earlier quoted context omitted.

I have a few friends in the service industry who prefer the tips model since the tips are often 200-300% of their base pay. If it switched to fixed hourly pay, they'd be taking a pay cut since there is no way their hourly pay would be $30/hr.

You guys understand that the price of meals would go up to compensate for the lack of tipping right? You’re not simply removing the cash. That extra 20% or whatever is now baked into the price. And generous tippers can still leave their extra bit. The change is, that by default everyone earns a fair wage.

you know that the actual minimum wage of someone who makes $30 or more in tips a month is $2.13 right? By law, if they don't make enough tips in a week to earn an effective wage of $7.25 an hour, the employer has to pay them that much.

this is all the employer actually has to pay. Everything else is the customer. Now imagine the employer has to pay $15 an hour. Thats 6+ times what they pay now if its a decently busy place.

You still think it's going to be baked into the price?

Re: Amazon shortchanged drivers $61.7M in tips

#118
post #9

Just do away with tips. It's a terrible and stupid system. If you want to do it as a customer, go ahead, but it should never be considered as part of the employee's compensation. If people aren't willing to do the job for the hourly wage alone with no tips, raise the wage until they are.

It's been tried in restaurants many times and usually with negative results. People balk at higher prices on the menu.

Not true.

Australia does not have tipping in it's culture. We pay our wait staff fair and reasonable rates (legally mandated btw).

I don't really think our food costs are too much higher than the USA. And people eat out ALOT here.

Food tastes good, service is good. People want to come back.

Please expand your horizons.

Re: Amazon shortchanged drivers $61.7M in tips

#119
post #109
post #9

Just do away with tips. It's a terrible and stupid system. If you want to do it as a customer, go ahead, but it should never be considered as part of the employee's compensation. If people aren't willing to do the job for the hourly wage alone with no tips, raise the wage until they are.

This is a reasonable comment, and seems a fairly popular idea. But is this the most important comment thread, to be voted to the top, on this particular post? The topic of the post is alleged blatant theft of tips. The question of whether there should be tips in the first place could be a diversion from the more immediate topic.

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