Should the minimum wage be lower for workers who get tipped? Two states are set to decide
apnews.com
Mel Nichols, a 37-year-old bartender in Phoenix, Arizona, takes home anywhere from $30 to $50 an hour with tips included. But the uncertainty of how much she’s going to make on a daily basis is a constant source of stress.
“For every good day, there’s three bad days,” said Nichols, who has been in the service industry since she was a teenager. “You have no security when it comes to knowing how much you’re going to make.”
The amount tipped workers make varies by state. Fourteen states pay the federal minimum, or just above $2 an hour for tipped workers and $7 an hour for non-tipped workers.
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You'd rather the person in question make $20 an hour all the time instead of $30-$50?
Because that's what would happen
This is the bullshit propaganda restaurant owners spread, and unfortunately a lot of tipped workers buy it.
If you're making $30-50 an hour, why would you stay at the job if they offered you $20? Your job is a skill, and the better you are, the more it is worth to your employer. Employees will go where their skills are appropriately compensated. Setting the minimum ensures that all workers can support themselves, and that will force all wages higher.
So labor is worth market value in the labor market?
I agree, then there's no need to change minimum wages for tipped employees
No, because labor rates are an unbalanced equation. Without a regulated minimum, employers will take advantage of the excess of laborers. The inherent threat of the violence of poverty will always create more supply than demand, because there is always someone willing to work for less.
But if your employer already values your skills at a certain rate, there's no reason to accept a pay cut for the same work. If you're great at your job, you'll likely still earn tips, but without the risk of going unpayed for your labor.
That only applies during high unemployment, right now there isn't even 4%, really nobody to exploit. Fast food places in California are paying $20/hr starting, much higher than the local $15/hr minimum wage in the cities
That $20/hr was legislated by the state not the "market rate" like you're trying to argue. It's kind of hilarious that you used that example considering it completely supports the other side of your argument.
Cool. No reason that work shouldn't pay a living wage for everyone everywhere forever.
If there's a big crash and everyone loses their jobs it's better that a few more people have jobs that pay under a living wage.
It's easier for the government to give a little bit assistance to someone who is underpaid than to pay all of their bills
Just abolish tipping. Everyone hates it except the restaurant owner. Why are we pandering to the owners when the customers and the staff vastly outnumber them?
That question summarizes most of the problems in the US pretty damn well.
Actually a lot of servers and bartenders get really annoyed by the prospect of abolishing tipping. They can make really good money from tips.
I agree it’s a terrible system but you get a lot of push-back from workers if you try to change it.
understandable in some ways, but also, I worked a bar in the uk for decent pay (5 star boutique hotel) so it can happen
I'm fine with this, I've been in countries where there's no tipping and their service is just as good
No they would make the $20 plus the tips instead of $3 plus the tip so if they made $30 in an hour and only $3 was from their hourly rate that would mean with the new rate they would be making $47.
Why would you assume people would stop tipping? As a consumer I would have no idea their hourly pay rate changed so why would I change my tip? Also tips are based on the service provided not the difference between what they are paid and a living wage that's not my problem as a consumer.
The poster said nobody should ever work for tips