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Old Apr 30, 2013 | 7:34 am
  #139  
CodeAdam10
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Originally Posted by CaptRobPhD
No doubt there are working poor among minimum wage peeps; 'tipped' employees may make lower than minimum wage, however...

http://www.dol.gov/whd/state/tipped.htm
Originally Posted by kipper
The comments are quite amusing.

That's not true. They do not earn less than minimum wage. The restaurant can pay them less than minimum wage IF their tips plus their base hourly rate equal an hourly rate of minimum wage or more. If the server's tips plus base hourly rate are still less than minimum wage, the restaurant must pay a higher hourly rate, so that their hourly rate equals minimum wage.
kipper is correct. Waiters are paid less than minimum wage but if their tips do not average out to at least the state's minimum wage, then the restaurant has to pay them the difference. Hence, waiters always do earn minimum wage - with or without tips - just like the millions of other minimum wage workers I mentioned.

Also, there are a handful of states where waiters do earn the state's minimum wage regardless, California and Nevada are two that come to mind.
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