Originally Posted by
JayhawkCO
Actually the gratuity is before tax, so the server only gets about 16.4% at my restaurant. And that's before we pay tip out to pay for the hosts, bartenders, etc., so that knocks it down to 13.4%. So wait...18% is more than enough (assuming good service)?

Don't even get me started on the $2.13/hr.
Chris
If I understand correctly, in states where food service employees can be paid less than minimum wage, once all tips are included their hourly salary must be at least equal to the minimum wage, otherwise the restaurant must pay them up to the minimum wage. This means even the worst waiter in the world is not making less than minimum wage.
There are a few states where wait staff now make the full minimum wage plus tips. I believe CA is one of those states, which makes this sort event even more profitable if it wasn't just an honest mistake.