Most of us know that federal minimum wage is $2.13/hour for tipped employees. They are expected to make up the difference between that and the standard minimum wage of $7.25 through tips. (If they do not, then the employer is required to fill the gap, but such employees will usually be let go.)

However, in 7 states, employers are required to pay minimum wage to their waiters regardless of tips received. Any tips are extra and cannot be applied toward the minimum wage. Those states are AK, CA, MN, MT, NV, OR and WA. Many of these have higher minimum wages to begin with (the last two are around $9).

So my question is the following: if you are eating out in one of those states vs. the rest of the country, does your tipping standard change? Should it change? Why or why not?

^ Wow! I never knew that! Hooray to some form of sanity coming into play. Regardless of what they're making, I'd still tip the same. And it shouldn't change, as it's a labor market. No one's forced to be a waiter and restaurants can't be forced to hire waiters. With the "real" minimum wage being enforced for wait staff in those regions, I bet restaurants there would be more demanding and discerning in terms of hiring, particularly on efficiency and people skills.

I agree completely. I've been to the Seattle area multiple times (my brother lives in Bremerton) and I tip there the same way I tip anywhere else: great service gets a great tip. Ratty service gets a ratty tip. Location doesn't matter to me; I'm showing appreciation for the service.

We need 43 states to come along and match those 7. I tip strictly based on service, without any consideration as to what the employee's wage is.

This is news to me. I did not know that tips are actually a component of wage, and that if a person does not make enough tips, the employer has to make up the difference. How is it even tracked? In case it's required, I would rather that a service charge is added to the bill. I would otherwise always tip only based on exceptional service. Otherwise the 'service charge' should already cover the normal standard service one receives.

Waitressess at almost any decent restaurant easily make above the minimum wage with tips. So with that, I think the notion of paying them a base wage of $2ish seems perfectly fair.

As the employees are paid a reasonable wage for the work, I don't see why the restaurant should have to start the pay at minimum wage. To me, minimum wage laws are to prevent people from working for very low wages, which is a moot point if their tips always put them above it.


To the OP, I don't have enough experience dining in those states. Perhaps I would give a slightly lower tip, but my tips vary by a lot, depending on service.

^^^

It is the EMPLOYERS responsibilty to properly compensate their employees, not mine. Slave wages should be illegal.

I don't notice which state does what. I tip the same for service whichever state I happen to be in. If that means someone in a particular state "makes out" better on me, so be it.

I've always wondered - how do places get by with doing this in the first place? What's the loophole?

Federal law allows this slave wage. Wait staff are exempt from the Federal minimum wage law.

Yes, I get that - but why? I know about tip credits and taxation and all that stuff, but how on earth did the whole shebang start in the first place? Why is it only restaurants?

I have never worked as wait staff, but when I worked in the US in another "tipping industry", the contract specified a "guaranteed wage". I think that was how they got around actual fair wages.

Basically, a portion of your guaranteed wage was an actual wage, paid by the company. The rest was expected to be made up in tips. If you didn't make X amount in tips that month, then the company was required to make up the difference.

That may be how they get around it for wait staff as well.

I'm not sure minimum wage could be considered a reasonable wage. Minimum wage is a poverty level income. I tip based upon the level of service I receive, and most of the time tip over 15%.

Indeed, same here.

It would have no effect on me. Let's do the math (and I'll round the numbers to keep it simple). Instead of paying a server $2.00 an hour they are paid $8.00. During that time they wait on 4 tables, one on which is mine. My bill is $100 so they are probably getting $20 from me for a tip. I'm certainly not going to take my pro rate share of the extra $6.00 and knock my tip down to $18.50.