Originally Posted by sewwhat85
i understand all of that but the question i ask is why do the customers be paying a portion of the waiters salary (by tips) instead of the owner of the business be paying minimum wage to all of the employees. Could you imagine if we had to pay grocery cashiers, the lady at the dry cleaners, how about tipping the drive thru at Mc Donalds , or the produce guy at the market. I just do not understand why some job classifications are not awarded min wage.
Unfortunately, most wait persons (in restaurants, not fast food places) are paid minimum wage because they are still viewed as "servers/servants" by their employers and through tax law. Their employers are allowed to pay them less than minimum wage, because the I.R.S. assumes that they will more than make up the difference in tips, and tax them accordingly. In fact, restaurants with "good" business practices actually withhold at the wage + assumed tip. Paying them their tip in cash may or may not help them. My son, who is a chef now, waited tables while attending culinary school. There were weeks, when his paycheck was a negative amount because of the amount they had withheld for taxes based on what they assumed he received. Until the legislature includes all job classifications in the minimum wage laws, tips will be considered to supplement the wage to bring them to minimum.
Fast food restaurants are required to pay minimum wage to their employees which changes the dynamic about tips. Other service industries, ie., nail salons, etc., have different regulations.