Galloism wrote:Lavochkin wrote:Then again, if tips were abolished and no legislation was created to replace it, waiters would actually be earning less money since a loophole allows tipped workers to earn below minimum wage.
And increasing the minimum wage would just increase the prices of every other good, which wouldn't just hurt tipped-employees but everyone else as well.
That's not a loophole. There's a tip credit that depends on actual tip earnings to be used.
If insufficient tips are given to meet minimum wage, the employer must, by law, make up the difference.
Also, labor doesn't make up 100% of the cost of a good. Doubling the minimum wage means an average price increase of 4.3%.
https://thinkprogress.org/this-is-how-m ... .9zj8pmlnl
It is a loophole when the minimum wage is as quote "the lowest wage permitted by law or by a special agreement". Tipping is an exception, not the norm.
Also the minimum minimum wage is $2.13 for an employee that earns $30 a months on tips. There are jobs that are not much more skilled that will earn you $30 in a few hours. The law is a joke and it's definitely a loophole.
No labor is not everything, but labor is used in everything. If wages increased, the actual price to make say a cup of coffee might not go up, but the trucks that need to deliver the coffee beans will be more expensive as the drivers cost more, the gas cost more, which makes other means of getting goods increase. When you look at the total, it's a big increase.
As for evidence, I live in Washington so this article explains our issues pretty well (http://townhall.com/tipsheet/erikahaas/ ... p-n2246718) and since I live in Seattle (one of the leaders in high minimum wages), I can tell you that my cost of living has gone up more than 4.3%, but since I don't make minimum wage, I'm actually losing money every time the wage goes up.





