What are the rules in using tip credit to pay your employees below minimum wage?
Restaurants use tip credit, so they can pay their employees way below the minimum wage. This restaurant prints on the bill: A 12%service charge is already added to the bill. You don't have to tip. This last sentence is bothering me! Their employees are paid below minimum. They make sure they make enough to reach minimum by adding a service charge to the tab. Then they turn around and take away the opportunity to get extra tips by telling the customer not to tip. Can this be a legal question in relation to tip credit? What are your thoughts.
Asked By: Maria J - 12/13/2009
Best Answer - Chosen by Asker
You are guaranteed to make a minumum wage for your state between BOTH your paid hourly wage AND your tips... More
Answered By: Noah - 12/13/2009
Additional Answers (1)
Well its not illegal for them to do that, but knowing that their employees are of a low income status would be a good cause for an employee "strike"! The best thing to do is elect an employee among you to address this grievance with the management, or ask for a meeting with the management as a group and give them your... More
Answered By: TIGER - 12/13/2009
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