Here’s A Tip

The Story

Restaurants in New York, as elsewhere, are exempted from paying the standard minimum wage, on the assumption that their wait staff’s tips will cover the difference. Now, a proposal would eliminate the “tipped minimum wage” and bring all employees receiving gratuities up to the same minimum wage as other workers. Many restaurant owners and wait staff oppose the measure: it would raise costs for the employers and could be a first step toward eliminating tips altogether. If workers and their employers are happy with the current arrangement, why change it? 

The Facts You Need to Know

  1. Tips: Driven by ideological opposition to the tipping system, unions are leading the fight to eliminate the tipped minimum wage. Read more.

  2. Minimum: Any raise in the minimum wage will result in employers hiring fewer workers. Read more.

  3. Meyer: When a prominent restaurant owner eliminated tipping, 40% of his most experienced wait staff quit. Read more.

“Unfortunately, the real minimum wage is always zero, regardless of the laws, and that is the wage that many workers receive in the wake of the creation or escalation of a government-mandated minimum wage…”

Thomas Sowell, Stanford University economist

Twitter Take

The Past is Present

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