Kempczinski also noted that in many states, sit-down restaurants are allowed to pay servers as little as $2.13 per hour, a federal minimum set in 1991, with tips making up the rest of their pay.
“So right now, there’s an uneven playing field. If you are a restaurant that allows tips or has tips as part of your equation, you’re essentially getting the customer to pay for your labor and you’re getting an extra benefit from no taxes on tips,” Kempczinski said.
Of course, but we all know that tipping is used pretty much everywhere to make up for poor wages. The vast majority of the industry does this, and it should be dismantled and rebuilt, so people are treated (and paid) as people!
As an ex service employee who had tips split and didn’t know about tip credit yet, I know that the options are to either get paid as a person, or treated as a person. The number of people who told me that they didn’t “do tips” but were willing to give me a high five as a substitute was as understandable as it was upsetting.
I’m sorry you went through that. The entire pay model is crap. The industry needs to scrap it and start over. It’s unbelievable, actually.
The good thing is, there are plenty of examples around the world (outside of North America) where service workers are treated and paid like people!