Comments on Finance ViewPoint: Tipping Point - How much is enough?

I didn't tell these people to pick a job at or bel...

2008-03-19T06:21:39.711+11:00

I didn't tell these people to pick a job at or below minimum wage. If they depend on tipping good for them, but there are plenty of jobs out there that pay more/better. I really think tipping is rediculous when now you are almost "required" to tip. If the service is fairly good by all means tip, however if the service is average, or poor forget about it. Why am I going to tip a waitress when literally all they did was take my order and bring out the food? No "How is everything" no refils, etc. Bottom line, a tip should be only given to service that exceeds your expectations or the average.

Yeah--federal minimum wage for tipped employees is...

2008-03-18T05:20:48.380+11:00

Yeah--federal minimum wage for tipped employees is $2.13/hr. See here (scroll down to the bottom). I've never been a server (there but for the grace of God...), but I know a lot of folks who have, and they tell me that a tip below a certain percentage (depending on the amount of time someone spends over their meal) actually means that they pay (through taxes and insurance, which comes out of their $2.13/hr check) for the privilege of serving someone.

It's a bit different in other industries, but for servers the difference between 10% and 15% can mean making the rent or not that month. I do think it's a shame, and servers ought not have to depend on tips (nor people feel obligated), but it's the system we have right now. Don't make your server grovel just to make a living--they deserve the dignity of having a less-than-perfect day now and then just like the rest of us do, without having to freak out about whether or not they can buy groceries or keep the lights on.

~alsafi

For places that rely on tipping as the main way fo...

2008-03-18T02:51:35.764+11:00

For places that rely on tipping as the main way for their employees to make money - the minimum wage (and yes, it is legal) is $2.13/hr.

Thanks for all your comments everyone. Low wages a...

2008-03-14T12:35:09.053+11:00

Thanks for all your comments everyone. Low wages are not uncommon but this seems to be the norm in the restruant business where tips are a big part of the income.

Louise - America is not a land of equality as I have found out. The rich are really rich and in a coutry where resturant staff earn $7 per hour, the average CEO of a Fortune 50 company earns $25 million a year (hedge fund managers make close to $200 million a year!!!)

AWA is taking us that way, but hopefully we don't get there. It is not uncommon at all for people on minimum wage to be working 2-3 jobs and barely having a life. I could go on.....but will leave it there for now.

well being and Aussie I only tip for good service,...

2008-03-14T04:31:25.501+11:00

well being and Aussie I only tip for good service, but at least over here we have decent wages (well we did until AWA's came in)
so if I were in the US I suppose I would adopt the local ways. 'when in Rome'

What I don't understand is how those types of wages can be legal! It is disgraceful that it is OK to pay an adult $6 an hour in this day and age.

I find it really weird that so many US companies pay their workers crap wages and then advertise how much money they give to charities. They should pay decent wages to their emplyees FIRST. then donate to charity. I just don't get it all.

I am surprised that 3 hr is being paid, given mini...

2008-03-13T06:44:14.493+11:00

I am surprised that 3 hr is being paid, given minimum wage is almost $US 6. This would be breaking employment laws and unless the employees are illegal or "unoffical" employees, this is a serious violation and should be reported.

That's not true. Only businesses with fewer than ...

2008-03-13T06:21:12.459+11:00

That's not true. Only businesses with fewer than a certain number of employees are allowed to pay less than minimum wage. And most that would qualify don't take advantage of the loophole.

Just so you know, wait staff don't even make minim...

2008-03-13T01:25:28.908+11:00

Just so you know, wait staff don't even make minimum wage. They usually make $3/hr + tips so they very much rely on them.