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r/tipping • … • u/Musclenervegeek

Visitors to the USA - All servers get the minimum wage in the USA by law.

Between 1909 and 1915, 6 american states banned tipping. This didn't last long then because of various factors but one of them was prohibition when restaurants lost their biggest revenue stream and the 1938 Fair Labor Standards Act that established a national minimum wage, but it explicitly exempted tipped workers, legally cementing the modern American tipping system. However, the current US Fair Labor Standars Act explicitly include tipped workers but in some states, it treats them differently than standard hourly employees with the tipped credit system. If an employee’s hourly cash wage plus the tips they actually earned do not equal the federal minimum wage during a workweek, the **employer must pay the difference** to make up the shortfall. Either way, tipped worker in theory should receive minimum wages but clearly that's not enough for them. Texas, Alabama, Mississippi, Georgia, Utah, and Indiana adopt this system. In other states, the tip credit is completely outlawed. Employers are legally required to pay tipped workers the **full state minimum wage** before they ever earn a single tip.

So people should not buy the minimum wage argument. It's false.

Servers get the minimum wage by law.

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