Mt. Vernon Register-News

Community News Network

July 10, 2013

Why tipping is bad for everyone

(Continued)

The only real beneficiary of the preposterously complicated tip credit is lawyers. Imagine what it's like for a company running restaurants in multiple states. There's no tip credit in some states, like California and Washington, where tipped employees must be paid the full minimum wage. Hawaii allows the tip credit only if the combined tip and cash wage surpass the statewide minimum hourly wage by 50 cents. New York and Connecticut have different minimum wages for servers, hotel employees, and bartenders.

Then you have to consider time that employees spend on activities not likely to yield tips. Applebee's, for example, has suffered a series of legal setbacks in lawsuits brought by tipped employees seeking back pay for time spent cleaning toilets and washing glassware.

The laws regarding tip sharing and tip pooling, which occur in virtually every restaurant, are even more complicated. Federal law allows mandatory tip sharing, but only among employees who customarily receive either direct or indirect tips. That means servers, bussers, food runners and hosts and hostesses can be required to pool their tips with each other, but not with managers. Unfortunately, the line between service and management is fuzzy in many restaurants, and differences between state laws further complicate matters. A California judge ordered Starbucks to pay $105 million in 2008 for forcing 100,000 baristas to share tips with supervisors. Last week, the New York Court of Appeals reached the opposite conclusion, ruling that New York law allows the arrangement. Chili's has also lost a multimillion dollar judgment over tip sharing.

The entire mess is begging for some certainty and predictability. Restaurants need a clear set of rules to follow. Servers should have a steadier income stream. Hosts and bussers, who have relatively little interaction with customers, ought not to be involved in tipping at all. Customers need more clarity as well, instead of worrying at the end of a meal if the waiter, or your guests, approve of your 17 percent tip.

Text Only
Community News Network
  • Africa goes medieval in its fight against Ebola

    As the Ebola epidemic claims new victims at an ever-increasing rate, African governments in Sierra Leone, Guinea and Liberia have instituted a "cordon sanitaire," deploying troops to forcibly isolate the inhabitants in an area containing most of the cases.

    August 18, 2014

  • Democrat? Republican? There's an app for that

    If you're a Republican, you might want to think twice before buying Lipton Iced Tea, and forget about Starbucks coffee. If you're a Democrat, put down that Reese's Peanut Butter Cup, and throw away the cylinder of Quaker Oats in your pantry.

    August 18, 2014

  • Five myths about presidential vacations

    In the nuclear age, presidents may have only minutes to make a decision that could affect the entire world. They don't so much leave the White House as they take a miniature version of it with them wherever they go.

    August 15, 2014

  • weightloss.jpg The scales of injustice: Weight loss differs between men, women

    You're not imagining it: There really are differences between the way men and women diet, lose weight and respond to exercise.

    August 13, 2014 1 Photo

  • Drug dealers going corporate

    A top federal official on Tuesday said that 105 banks and credit unions are doing business with legal marijuana sellers, suggesting that federal rules giving financial institutions the go-ahead to provide services to dealers are starting to work.

    August 13, 2014

  • wwimemorial.jpg The benefit of World War I omission on the Washington Mall

    By 1982, when the Vietnam Veterans Memorial opened on the National Mall, something had shifted in the way we remember our wars. A national memorial, prominently placed on the nation's most symbolically significant public space, came to seem like an essential dignity offered to veterans, their families and the memory of those who gave their lives. But there is an exception.

    August 11, 2014 1 Photo

  • In Japan, ramen aficionados worry their favorite dish is coming off the boil

    "The ramen boom has ended," said Ivan Orkin, a New Yorker who first traveled to Japan in the 1980s and now owns two noodle-soup restaurants in Tokyo. "A boom implies that there are new avenues and new growth to pursue, and that's not the case in Japan anymore."

    August 11, 2014

  • Ronnie Ellis: U.S. Senate race trail long and interesting

    By Ronnie Ellis/CNHI News Service

    FRANKFORT — Last week was a long one, endured under the onslaught of an awful summer cold and played out across the commonwealth. It began in Fancy Farm and ended it in Corbin with a trip to Hazard in between.

    August 9, 2014

  • Senate race becomes family affair

    By LANA BELLAMY
    CNHI NEWS SERVICE
    PAINTSVILLE — U.S. Senate Minority Leader Mitch McConnell got personal on Friday while calling a report inaccurate concerning his wife’s role as a board member in an organization that funds anti-coal efforts.

    August 9, 2014

  • Dennis Beighley led out of courthouse Mother, grandparents face attempted murder charges in starvation case

    Cheers and applause erupted in a courtroom when a pregnant mother from Pennsylvania accused of starving her then-7-year-old son was remanded to jail, along with the boy’s grandparents.

    August 8, 2014 2 Photos

Twitter Updates
Facebook
Stocks