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View Diary: Restaurant industry's low wages leave 40% of workers in near-poverty (37 comments)

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  •  Let's inject a note of reality here. (4+ / 0-)
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    Archie2227, Sparhawk, AlexDrew, Utahrd

    We are the reality-based community, after all.

    Whenever these studies come out saying restaurant workers are stricken with poverty, I have to ask where the data come from.  If it is income reported by the tipped workers to the IRS, the actual income is often quite a bit higher.

    With every restaurant from major chains to local diners illegally telling tipped employees they must report 8% of gross sales instead of 100% of actual tips received, the reported income is going to be lower than the actual income! even after taking all factors into account.

    I understand there are other problems, like non-tipped employees not making a decent wage and having their hours shorted by unscrupulous owners, and the fact that too many employees in this industry cannot get more than a few hours a day.  These are serious problems.

    But there will never be an accurate study of how many tipped employees are under the poverty level until somebody can get an accurate read of how much they make in tips.  Relying on what they report to the IRS will never cut it until the IRS starts enforcing the law.  A good start would be to fine employers who give inaccurate information to their employees.  That provision already exists; it just needs to be enforced.

    There is not an Establishment Party. There is not a Tea Party. There is only the Republican Party, and they all suck.

    by Fiddler On A Hot Tin Roof on Wed Aug 27, 2014 at 08:55:51 AM PDT

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