Earlier quoted context omitted.
In practice, tipped employees typically get 0 dollar paychecks from their employers; the business assumes that your tips bring you up to the minimum wage, whether true or not, and they pay taxes on your behalf accordingly. This is also typically calculated on a pay period basis, rather than by hour or by day, which results in overstaffing during slow periods to the detriment of all employees, because as long as you g…
Thats not true, tipped employees typically do get >0 dollar paycheck from their employers. That is their base hourly wage. general minimum wage is peanuts, yes. but tipped waitstaff only make $2.83/hr is not true. If the employer did not make up the difference then they risk being fined/shutdown.
True, tipped minimum is $2.13/hr.
> If the employer did not make up the difference then they risk being fined/shutdown.
Employers make up reported shortfalls in tipped jobs, but they also often treat shortfalls as a negative performance indicator, justifying termination. In jobs where there are cash tips (not everything through a payment system), this incentivizes enployees to assure that there are no shortfalls.