Skip to main content

View Diary: Daily Kos Labor digest: Think you're tipping San Antonio hotel workers? Think again (21 comments)

Comment Preferences

  •  Regarding "service charge": true in many states (5+ / 0-)

    This is true a lot more than you realize. Cruise lines, hotels, restaurants, etc. often add a service charge but do not pay it out.

    Even in a state that requires you pay service charge out, what often happens is this:  a server in a restaurant works a private party event of say 50 people x $40 per head = $2,000, and a 20% service charge is added, making it $400.

    Now, the server is a "tipped position", so their initial tipped wage - minimum wage rate is $2.13 per hour. Let's say 4 servers work the event for 4 hours. Ultimately, they have to be paid the regular $7.25 minimum wage, so we have:

    16 hrs x $2.13 = $34.08 tipped wage paid
    16 hrs x $5.12 = $81.92 wages paid to bring them to the full $7.25 per hour.

    Now, the $81.92 comes out of the $400. In some states, it stops there, and management gets the rest.

    Even in states where the whole $400 has to be paid out, remember that the servers basic hourly wage is $116 and this can be covered by the $400, so really only $284 is paid as a tip, for a 14.2% tip.  Not bad, but still, don't think you're paying a 20% tip.

    Liberalism is trust of the people tempered by prudence. Conservatism is distrust of the people tempered by fear. ~William E. Gladstone, 1866

    by absdoggy on Tue Jan 29, 2013 at 02:51:24 PM PST

    •  It doesn't work like that in NY (3+ / 0-)

      At least not in my part of the state.  I made $15-20 and hour all told.

      I always wondered why people said waiters were poor.  If that's the way it works in other places, I can see.

      There is truth on all sides. The question is how much.

      by slothlax on Tue Jan 29, 2013 at 03:50:05 PM PST

      [ Parent ]

      •  Yes, NY has stringent laws on this (1+ / 0-)
        Recommended by:
        samddobermann

        Call it what you will - service charge, gratuity, etc. - NY requires that it is paid out in full to the staff. There was a case about 5-6 years ago that clarified this and a number of NY restaurants, banquet halls, etc. had to pay up.

        Liberalism is trust of the people tempered by prudence. Conservatism is distrust of the people tempered by fear. ~William E. Gladstone, 1866

        by absdoggy on Wed Jan 30, 2013 at 05:44:07 AM PST

        [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site