So are you saying that employers are allowed to takes tips from the server? I was a waiter through college (10 years ago) and my employer never even saw the tips I made. it was my choice how much I would tip the bus boy, hostess, etc.
The article is a little confusing. I think what is being said is that because you get tips I don't have to pay you the minimum wage. So in affect because of the tips the business owner makes out because they can pay you less.
As far as the employer never saw the tips, things have changed since you were getting tips. Now what happens Is that the employer assumes you made at least 10% of your gross sales and the they tax you on that amount.
To be more clear if you get bad service and do not leave a tip, the waiter/waitress actually is paying more taxes and thus lost money on that table.
I would if I got really bad service, notify the manager, but would still leave a small tip to offset the automatic addition that they get. Then you most likely would get comp'ed and receive a free meal or desert.
Oh, they're seeing the tips now. Every tip that goes into an employees pocket is now money an employer can use to reduce the hourly wages of his employees. Every dollar an employer is allowed to reduce his worker's hourly salary is a dollar the business owner sees going directly into the business owner's pocket.
Yes at Ruby Tuesdays they have three automatic tip outs that comes out of your check. One goes to the host, one to the bar tender, and one to the salad bar manager. There is no direct tip outs like at a lot of restaurants. A server doesn't go up to the bartender at the end of the night and give him money. It is automatically removed from the servers pay check and put onto the bartenders paycheck. This $2.13 an hour doesn't help servers at all. What corporations have learned is they can put all kinds of employee's on that scale. They can keep their labor cost low. The tip out comes from tipped employees to keep other employees hourly rate down. It is a shame because all corporate restaurants of that style use a similar system. O'Charles, Chili's, Applebee's, Red Lobster. The list goes on. The truth is these places are a repetitive hiring business. The only way to make true money (not temporary money) is to move up into management. Assistant managers are not payed that much, but get great money by bonus. Labor cost, hence tipping shares. Food cost, ever increasing food cost. can you say $8.95 hamburger. The food cost is going up an the service is not getting better. Servers should be paid minimum wage. Their tip count could then be dropped down to 10% and the corporate restaurant bonus system should be done away with.