Semantics. There are industries where the employees are paid less than minimum wage as anticipated tips are factored into their overall compensation. If the ti

Semantics. There are industries where the employees are paid less than minimum wage as anticipated tips are factored into their overall compensation. If the tips do not meet the minimum wage threshold, the business is responsible for the difference. In this case, the costs (wages) are being offloaded by tips. Not to mention the industries that pay low wages as the tips subsidize a living wage. https://webapps.dol.gov/elaws/faq/esa/flsa/002.htm https://webapps.dol.gov/elaws/faq/esa/flsa/002.htm