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Minimum wage at restaurants in my state is $2.13 an hour. In such cases, it absolutely is used to pay someone's wages, which is fucked up, IMO.
If a server' wage plus tip does not federal minimum wage, the business is required to make up the difference. I'm not saying the $7ish an hour federal minimum is a liveable wage.
What makes this extra stupid, is this means the first $5 or so each hour in tips only removes the obligation from the business owner and does nothing to help the server.
That only applies to employees. That does NOT apply to contractors. There is no minimum wage for contractors.
There is no "tipped minimum wage" for most delivery drivers. DD does not have to pay one thin dime if the driver doesn't make enough tips to reach minimum wage.
Further, the contracted worker is responsible for their own expenses: the IRS says a mile of travel costs $0.655. DD's usual $2 base pay covers only the first three miles worth of travel expenses, even if the actual travel is much more than 3 miles. I regularly see 12-mile trips with $2 to $2.50 base pay. The driver pays $8 to make these trips; the first $6 of the customer's tip just goes to expenses before he actually earns anything.
Yes, I agree the whole system is dumb and convoluted intentionally.
minimum wage at restaurants in washington state is $16.28 starting next year. It's $15.74 right now. They still expect a 18% tip. Should I just say fuck it and not tip?
Yes
my mindset is that if minimum wage is already a given, then I should be tipping a lot less than standard. Though doing so gets you shit treatment in future visits because tipping is more of a bribe than a remark on good service. Remarkable how all this works, isn't it?