The law states that companies only have to pay $2.13 an hour IF and ONLY IF the servers get tipped more than minimum wage per hour.

If you think about that for a second, it implies any business with wait staff that makes more than minimum wage off of tips per hour... is getting healthy business!! A healthy business should be paying it's employees minimum wage.

The catch-22 is to new businesses. A new business is expected to pay 3.40 TIMES MORE in wages because it's not yet getting business. It would make sense for a brand new business to be able to pay $2.13/hour until it makes $20,000 a month.

It's stupid that WELL RUNNING and MONEY MAKING restaurants get a huge discount on labor by letting the customers foot the bill!


My solution: Make everyone pay $7.25 regardless of tips. Who cares if people are making $50 an hour for serving people; they all deserve minimum wage from a job. If businesses with no business can do it, then businesses WITH business can do it too!!

1/22/2011 2:27:27 PM

k

1/22/2011 2:32:41 PM

good businesses pay minimum wage AND let you keep tips, forget the fact that they could pay you less. it makes for happy workers which makes for happy customers.

1/22/2011 2:33:24 PM

i did not know this

i'm going to lower my tip percentage to compensate

1/22/2011 2:34:15 PM

I'm going to stop tipping now that I have this new information. Thanks!

1/22/2011 2:38:31 PM

Quote :

"good businesses pay minimum wage AND let you keep tips,"

They're virtually nonexistent

1/22/2011 2:39:04 PM

lol so i just explained that happy workers makes for happy customers and you (the customers) want to make that less so...

ok, hope they don't have a system like the place i worked where we could keep tabs on customers like you...

[Edited on January 22, 2011 at 2:40 PM. Reason : ^ i work at one, i can make $12-14hr delivering pizzas]

1/22/2011 2:40:17 PM

Quiznos pays their employees minimum wage, and they have a line on their receipt for tipping. It gets scratched through 99% of the time as well.

[Edited on January 22, 2011 at 2:40 PM. Reason : ^don't like it? get a real job]

1/22/2011 2:40:22 PM

i wonder where they came up with 2.13 from

1/22/2011 2:41:09 PM

Quote :

"I'm going to stop tipping now that I have this new information. Thanks!"

Wait wait... before you go impotent on tipping. Most companies pay $2.13/h and report that you made minimum wage in tips regardless of what you report.

That means the business is still paying the taxes on the extra $5.12 but not paying you the extra $5.12 an hour.

1/22/2011 2:42:17 PM

its pretty clear now why you can't even run a pizza place. paying $2.13 an hour is less of a burden to a new restaurant than $7.25. if there are times when tips are running low, sure they will have to cover the difference to pay minimum wage, but if you require the higher wage they will always have that higher burden. tips are not directly connected to success as a new business, even a small startup can have adequate tips if they staff appropriately. the difficulty for the new startup is covering costs and breaking even, this would be made more difficult by guaranteeing a higher labor cost. by only requiring the lower labor cost, if business is slow enough to where staff is not making tips the staff can be reduced so that the tips cover the difference and the business now has a lower labor cost burden. the entire idea of the $2.13 is because restaurants are risky and demand can fluctuate quickly, something that is more of an issue at the beginning than after its a problem.

common sense really

1/22/2011 2:44:52 PM

lol ive always loved the phrase "get a real job" because it doesn't actually mean anything

unless customers as a whole decide they want to make and build everything themselves then there will be a job market for everything from sandwich making to home construction

1/22/2011 2:45:19 PM

no, it means they are paying taxes that should be covered by the employee, but the government knows that most of those wages will never be reported.

1/22/2011 2:45:22 PM

I think what it comes down to is that this dude wants all the benefits of capitalism without any of the pitfalls.

CAN'T HAVE IT BOTH WAYS, SON

1/22/2011 2:46:36 PM

Quote :

"its pretty clear now why you can't even run a pizza place. paying $2.13 an hour is less of a burden to a new restaurant than $7.25. if there are times when tips are running low, sure they will have to cover the difference to pay minimum wage, but if you require the higher wage they will always have that higher burden. tips are not directly connected to success as a new business, even a small startup can have adequate tips if they staff appropriately. the difficulty for the new startup is covering costs and breaking even, this would be made more difficult by guaranteeing a higher labor cost. by only requiring the lower labor cost, if business is slow enough to where staff is not making tips the staff can be reduced so that the tips cover the difference and the business now has a lower labor cost burden. the entire idea of the $2.13 is because restaurants are risky and demand can fluctuate quickly, something that is more of an issue at the beginning than after its a problem. common sense really"

Common sense? You missed the entire concept.

1/22/2011 2:49:52 PM

no, you did. that's why i called you out.

look we get it. you wanted an excuse to do cocaine into your 30's and pick up high school girls by buying them beer so you opened a pizza place. it's a respectable endeavor, but your shortcomings as a businessman are apparent.

1/22/2011 2:52:53 PM

Please continue...

to look like a jackass.

1/22/2011 2:54:34 PM

i thought you had like an insane beer variety for patrons, i would have thought that would carry over into some success by itself

1/22/2011 2:55:08 PM

i'm pretty sure it is you who missed the entire concept. your entire first post is premised on your neglect to realize that minimum wage is designed to "protect" the employee by setting a wage floor. your employees should be making minimum wage regardless of whose pockets it's coming from. i'm pretty sure that the 2.13 is to cover taxes/ss/medicare, not going to the employee.

goddamn you're a terrible business owner

1/22/2011 2:58:41 PM

ibt sales meme

1/22/2011 2:59:40 PM

In Virginia, you can't advertise beer, beer prices, beer specials, or beer deals. My selection is good (90 varieties) but it's not insane. I do have the #1 beer BOTTLE selection, but I'm only 4th largest everything selection in the 7 cities. I need insane but insane is insane, literally. I don't have the storage space for 45 more cases of beer. Give me some years to pay my shit off and expand and I'll be where you and I want to be.

[Edited on January 22, 2011 at 3:07 PM. Reason : parenthesis ]

1/22/2011 3:01:32 PM

Quote :

"i'm pretty sure it is you who missed the entire concept. your entire first post is premised on your neglect to realize that minimum wage is designed to "protect" the employee by setting a wage floor. your employees should be making minimum wage regardless of whose pockets it's coming from. i'm pretty sure that the 2.13 is to cover taxes/ss/medicare, not going to the employee. goddamn you're a terrible business owner"

I'm pretty sure you're missing the entire concept.

The concept is about companies who ARE making money like IHOP, PF Changs, and Cheesecakes factory... ALLl multi million dollar companies who pay their servers $2.13. Why should these companies get a discount?

.

[Edited on January 22, 2011 at 3:08 PM. Reason : .]

1/22/2011 3:05:24 PM

because the consumer is paying for their server. plus those companies have developed a business model which allows them to deliver value to their customer, something you have obviously failed to be able to provide.

1/22/2011 3:09:53 PM

Quote :

"those companies have developed a business model which allows them to deliver value to their customer"

Have you seen their prices?! You're way too dumb and ignorant to have this conversation with me.

1/22/2011 3:11:34 PM

lol

you obviously have no understanding of the word value

1/22/2011 3:12:52 PM

1/22/2011 3:12:54 PM

it's not a discount when its available to everyone, maybe you should learn how to schedule better so you are not constantly overstaffed and paying a premium on labor. maybe then you can buy some more beers to sit and skunk in your cooler while no one buys them.

1/22/2011 3:16:59 PM

I'm pretty sure you're the dumbfuck that buys shit from places because it says the item only cost $500 for a $2399.00 value!!

Value means nothing.

1/22/2011 3:17:19 PM

no, i can afford the $2399 item. i come from a rich family

1/22/2011 3:18:41 PM

Quote :

"it's not a discount when its available to everyone, maybe you should learn how to schedule better so you are not constantly overstaffed and paying a premium on labor. maybe then you can buy some more beers to sit and skunk in your cooler while no one buys them."

You really suck at trolling.

1/22/2011 3:20:00 PM

trolling thats accurate is still accurate

1/22/2011 3:20:29 PM

1/22/2011 3:21:32 PM

Quote :

"no, i can afford the $2399 item. i come from a rich family"

It's $2399 value. It doesn't cost $2399. It only costs you $500. Why are you going to spend $2399?

1/22/2011 3:21:54 PM

who knows, why do i give the valet a $20 when he would be happy with a $5?

1/22/2011 3:23:31 PM

Because you suck with money and don't understand its real value?

[Edited on January 22, 2011 at 3:25 PM. Reason : apostrophe]

1/22/2011 3:25:16 PM

will you two just fuck and get it over with?

1/22/2011 3:26:06 PM

i'm not the one who wants to save small restaurants by guaranteeing them a higher labor cost

1/22/2011 3:26:11 PM

what one are you?

1/22/2011 3:27:40 PM

I remember hearing about a coffee shop in Vermont that stopped allowing tips and just paid the workers at least minimum wage

there was less drama

1/22/2011 4:18:53 PM

In NC, baristas have to be paid at least minimum wage unless they work in a place with a loophole that groups them with bartenders.

But, ANOTHER TIPPING THREAD.

Quote :

"Wait wait... before you go impotent on tipping. Most companies pay $2.13/h and report that you made minimum wage in tips regardless of what you report. That means the business is still paying the taxes on the extra $5.12 but not paying you the extra $5.12 an hour."

Reporting is screwed up.

1/22/2011 4:33:30 PM

This thread is so full of fail I'm quite amazed.

1/22/2011 4:45:52 PM

Alaska pays minimum wage plus tips, I know a ton of girls who make $25-$30 an hour due to this.

1/22/2011 5:25:47 PM

GeniuSxBoY @3:17:19 PM:

Quote :

"Value means nothing."

GeniuSxBoY @3:25:16 PM:

Quote :

"Because you suck with money and don't understand its real value?"

Just sayin'.

1/22/2011 6:41:35 PM

another intellectually stimulating conversation, brought to us by GeniuSxBoY

1/22/2011 7:06:50 PM

you know, for a GeniuSxBoY you post a lot of stupid shit, pay your fucking workers and stop bitching so fucking much

1/22/2011 7:21:57 PM

BTW and not to be technical, but I thought that a catch 22 referred to a situation where you were screwed regardless of the outcome.

In this case the new business is getting screwed, but they only have one option. If this were a Catch 22, then the new business would have two options available for them to use, but would be screwed in both.

[Edited on January 22, 2011 at 7:32 PM. Reason : sa]

1/22/2011 7:30:53 PM

people should be paid according to market price, their skills, knowledge, level of performance, and value to the company, not what some tyrant in government says.

1/22/2011 7:32:08 PM

people should be paid according to market price, their skills, knowledge, level of performance, and value to the company, not what some tyrant in government says.

1/22/2011 8:21:04 PM

sounds to me like you just have a shitty pizza place

1/22/2011 8:24:47 PM

says the guy who wants to raise the minimum wage for them

1/22/2011 8:24:54 PM