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If the company promised the driver 300 dollars and used tips to reach that 300 dollar amount, it's not clear to me that the tips went to the driver at all. The
by staticman2 4y ago
If the company promised the driver 300 dollars and used tips to reach that 300 dollar amount, it's not clear to me that the tips went to the driver at all. The tips reduced the company's liabilities.
- tpmoney 4y agoIt's functionally no different than the system the federal government already approves for "traditional" tipped wages. Federal minimum wage for tipped wait staff is $2.13 / hour, with an obligation of the employer to pay out to $7.25/hour if and only if the tips on top of that $2.13 don't cause the employee to earn that amount or more.
- staticman2 4y agoYes but when I tip at a restaurant nobody claims 100 percent of the tip goes to the employee. The restaurant doesn't make any claims at all. The issue is whether Amazon was deceiving consumers, not whether this practice would otherwise be illegal.
- hansvm 4y agoDepends on the restaurant. It's moderately common (>>1 instances) for the restaurant to institute a tip pool unbeknownst to customers or to skim the top and just guarantee minimum wage for the wait staff.