If the tips+wage fell short of federal/state minimum wage, the employer has to make up the difference.
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Replying to @teej_m @thijsniks
Always tip your bartender but let’s not act like they make $2/hr
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Replying to @teej_m
Sure, but that doesn’t change anything about tipping being weird and in most states the minimum wage is still under $10
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Replying to @thijsniks
It’s a cultural thing and personally I don’t find it weird at all. What actually sucks about the entire thing is not the funky wage system, but negative variance. Having someone stiff the tip on a fat bill sucks. Mandatory 10% tip + optional on top would be better.
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Replying to @teej_m
If the tip becomes mandatory, why not increase the wage and roll the cost into the menu prices?
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Replying to @thijsniks
Because human behavior has shown that lower prices + surcharges are perceived as less expensive. See: grocery shrink ray, airline pricing. This setup is more likely to lead to an increase in wages because it has a lower effect on perceived cost.
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Replying to @teej_m
I think the rest of the world would disagree on the latter :)
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Replying to @thijsniks
Lower perceived prices = higher demand regardless of quality or actual price. This has born out in so many ways.
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Sure, but higher demand doesn’t automatically translate into better pay for employees
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