Sure. All staff must be paid a minimum wage under the federal guidelines. The catch is that tipped income goes to meet that wage obligation, which means they have to get paid to the minimum first under law.
But (a) wage theft in the US is rampant, with tipped workers routinely being underpaid or shorted by non-compliant management. And (b) even under the guidelines, min wage is a pittance. You can’t survive on $7.25/hr in a normal 40 hr work week.
So even if employers are compliant (which they’re often not), you’re talking about people trying to live on $14k/year in a country where apartments rents bottom out at the $6-8k/year range in the slums and even the meagerest grocery bills easily run into $4-5k/year range in the wake of inflation. Nevermind utilities, transport, health care, clothing, etc.
Sure. All staff must be paid a minimum wage under the federal guidelines. The catch is that tipped income goes to meet that wage obligation, which means they have to get paid to the minimum first under law.
But (a) wage theft in the US is rampant, with tipped workers routinely being underpaid or shorted by non-compliant management. And (b) even under the guidelines, min wage is a pittance. You can’t survive on $7.25/hr in a normal 40 hr work week.
So even if employers are compliant (which they’re often not), you’re talking about people trying to live on $14k/year in a country where apartments rents bottom out at the $6-8k/year range in the slums and even the meagerest grocery bills easily run into $4-5k/year range in the wake of inflation. Nevermind utilities, transport, health care, clothing, etc.
Utterly unsustainable.