Do Restaurants Have to Pay Minimum Wage?

Do Restaurants Have to Pay Minimum Wage?

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MB

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01 Apr 21

I was listening to the news this morning on NPR and heard that many in congress rejected the minimum wage increase because it would close restaurants. I thought I remembered restaurants, farms and other agriculture related businesses were exempt from the minimum wage. So I looked into it and it depends on state laws and other factors.

https://www.thebalancesmb.com/who-gets-restaurant-minimum-wage-4134314

In the same news program this morning on NPR they covered the history of tips. They said minorities were completely dependent on tips for income. The restaurant did not pay them anything!

Should the burden of minimum wage increases fall on the states now? If a state requires minimum wage be paid to a waitress or waiter what should they do? Should they lower minimum wages for restaurants?

I don't see why a restaurant would go out of business because of any minimum wage hike. They can pass that cost to the consumer. They are all held to the same minimum wage, so it isn't like a competitor has an unequal advantage because of it. They are all burdened equally, so they all increase prices equally and it becomes clear it is no burden to restaurants unless they don't pass the cost to the consumer.

Is congress making lame excuses for keeping the poor in abject economic slavery?

rain

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Denying anyone minimum wage because they receive tips is running a scam. It's no business of the restaurant whether tips are received by the server.

The idea reeks of corporate lobbying that was probably dressed up as fighting for mom & pop shops.

MB

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@vivify said
Denying anyone minimum wage because they receive tips is running a scam. It's no business of the restaurant whether tips are received by the server.

The idea reeks of corporate lobbying that was probably dressed up as fighting for mom & pop shops.
I agree.
I'll bet most state minimum wage laws allow most mom and pop shops to be exempt from minimum wage anyway. I don't know about other states, but in MI it depends on how many age 16 and older employees and the income of the restaurant. They can pay minors less as well. MI also allows for a training wage of $4.25 for the first 90 days ages 16 to 19 which I didn't know. A restaurant in MI could hire more 16 and 17 year old teenagers to pay less than minimum wage legally.

https://www.michigan.gov/documents/lara/Minimum_Wage_FAQ_644775_7.pdf

k
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@metal-brain said
I was listening to the news this morning on NPR and heard that many in congress rejected the minimum wage increase because it would close restaurants. I thought I remembered restaurants, farms and other agriculture related businesses were exempt from the minimum wage. So I looked into it and it depends on state laws and other factors.

https://www.thebalancesmb.com/who- ...[text shortened]... to the consumer.

Is congress making lame excuses for keeping the poor in abject economic slavery?
“ Is congress making lame excuses for keeping the poor in abject economic slavery?”
Yes they are but it’s worth remembering at election time that the vast majority of democrats in congress favoured the minimum wage increase whilst the vast majority of republicans in congress opposed it and that will always be thus.

rain

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@kevcvs57 said
“ Is congress making lame excuses for keeping the poor in abject economic slavery?”
Yes they are but it’s worth remembering at election time that the vast majority of democrats in congress favoured the minimum wage increase whilst the vast majority of republicans in congress opposed it and that will always be thus.
They want lower wages for the poor while simultaneously pushing higher tax cuts for the rich.

Pawn Whisperer

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@vivify said
Denying anyone minimum wage because they receive tips is running a scam. It's no business of the restaurant whether tips are received by the server.

The idea reeks of corporate lobbying that was probably dressed up as fighting for mom & pop shops.
I can agree with you all the way in philosophy, but I do not believe in state mandated minimum wage to begin with.

I have heard of situations, btw where a bartender will gladly PAY to take a certain shift, the tips are that good.
Also is true for lap dancers and strippers.

Pawn Whisperer

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@Metal-Brain -
Is congress making lame excuses for keeping the poor in abject economic slavery?


Actions speak louder than words.

The congress wants to help the poor but allows federal income tax, social security tax,
state income tax, and county/city tax to rape the paychecks of the poor.

Simple as that.

If your a government pig with a gun... the world is your oyster, and "poor" dollars spend just as nice as "rich" dollars

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@metal-brain said
I was listening to the news this morning on NPR and heard that many in congress rejected the minimum wage increase because it would close restaurants. I thought I remembered restaurants, farms and other agriculture related businesses were exempt from the minimum wage. So I looked into it and it depends on state laws and other factors.

https://www.thebalancesmb.com/who- ...[text shortened]... to the consumer.

Is congress making lame excuses for keeping the poor in abject economic slavery?
employers have to pay a minimum of 2.13 per hour regardless of tip amount.
If tips and minimum wage (2.13) doesnt equal 7.25 per hour employer is responsible for the difference. The employee is guaranteed 7.25 per hour. That is Fed law.

MB

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@kevcvs57 said
“ Is congress making lame excuses for keeping the poor in abject economic slavery?”
Yes they are but it’s worth remembering at election time that the vast majority of democrats in congress favoured the minimum wage increase whilst the vast majority of republicans in congress opposed it and that will always be thus.
True, but here are the democrats who voted against it and their statements regarding it.

https://thehill.com/homenews/senate/541860-the-eight-democrats-who-voted-no-on-15-minimum-wage

Do you have disdain for them even though they are democrats or do you forgive traitors?

Pawn Whisperer

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three things that will always be true when raising the minimum wage, as has been done 22 times.

1. The effect never lasts. This is obvious! And the reason why is, everyone in turn takes a COL raise.

2. Fixed income people take the shaft. They won't get the same % raise as everyone else.

3. Everyone ends up in a higher tax bracket. So guess who wins,...? Right, the fatbastid politicains!

Lord

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In Europe you have minimum wages and restaurants.
I’m pretty sure it’s not one or the other.

The whole basing an income on tips is madness. Tips are an extra. You can’t plan your life based on the whims of people tipping you. You need a basis to grow from.

k
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@metal-brain said
True, but here are the democrats who voted against it and their statements regarding it.

https://thehill.com/homenews/senate/541860-the-eight-democrats-who-voted-no-on-15-minimum-wage

Do you have disdain for them even though they are democrats or do you forgive traitors?
Yes I have disdain for anyone who voted against the rise in minimum wage levels.
Unlike yourself I have no lord and master just people I agree with or disagree with. How many republicans voted against the measure? Go on have a guess.

Pawn Whisperer

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@kevcvs57 -
Yes I have disdain for anyone who voted against the rise in minimum wage levels.


So you'd rather screw the old, retired people who are on "heat or eat" already, eh?

not very nice.

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@shavixmir said
In Europe you have minimum wages and restaurants.
I’m pretty sure it’s not one or the other.

The whole basing an income on tips is madness. Tips are an extra. You can’t plan your life based on the whims of people tipping you. You need a basis to grow from.
...You are well informed and rarely wrong
.In Europe there is 12% to 15% added to your bill.

Pawn Whisperer

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@jimm619 said
...You are well informed and rarely wrong
.In Europe there is 12% to 15% added to your bill.
Odd, isn't it?

When you purchase a stove at Target, I don't see them add 12% - 15% to the bill - *presumably* to pay the salesman.

I don't see anyone tip the salesman, either. Ahhh... commissions!!
Maybe they should pay waitresses a commission!!