6 ms·

Servers make $2.14 an hour in Texas, they're fully dependent on tips. They often/always have zero control over the kitchen or management's ability to do staffin

Servers make $2.14 an hour in Texas, they're fully dependent on tips. They often/always have zero control over the kitchen or management's ability to do staffing. Keep this in mind when you eat in that state.

ApolloFortyNine 4y ago
Still required by law to pay the difference up to minimum wage. Still only 7.25 but let's be accurate.
- seadan83 4y ago
  Law and practice can often be different. Often "the agreement" is cash tips are not declared on taxes, and you don't hassle the company when you make an hourly shortfall. My impression is that arrangement is far more common than companies actually making sure you get minimum wage every hour.
  - kmoser 4y ago
    The IRS assumes servers get a certain amount of tips, so if you don't report close to what they expect, you run a high risk of being audited.
    - seadan83 4y ago
      True. The loophole is that most tips are on credit cards and hence automatically reported. There is no distinction of cash vs CC tips when reporting. So effectively zero dollars in cash tips is being reported. In the 90s I delivered pizzas for one of the big companies. I raised that if I didn't make tips the company was supposed to pay me $5.50 instead of the $3.25 that was my wage. The boss said, ok, but if we do that then you have to report your cash tips" - the "agreement" was quite explicit
thayne 4y ago
That is not unique to Texas.
- red-iron-pine 4y ago
  Several states. Official Dept of Labor breakdown: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
jdkee 4y ago
Obligatory: https://www.youtube.com/watch?v=M4sTSIYzDIk&ab_channel=Peacock https://www.youtube.com/watch?v=M4sTSIYzDIk&ab_channel=Peaco...
seanmcdirmid 4y ago
In WA (and I think CA) they are required to make state/local min wage ($15/hour) before tips are considered.
- joveian 4y ago
  Same in Oregon, other than minimum wage being lower (and variable depending on where you are).
red-iron-pine 4y ago
That's if and only if you make enough declared tips to bring you over minimum wage for that period. Otherwise they have to give you minimum. But it also means that if you snag a $40 dollar tip or something you're basically down to $2 an hour for that day. By comparison some states like California requires minimum wage + tips.

ApolloFortyNine 4y ago

Still required by law to pay the difference up to minimum wage. Still only 7.25 but let's be accurate.

seadan83 4y ago
Law and practice can often be different. Often "the agreement" is cash tips are not declared on taxes, and you don't hassle the company when you make an hourly shortfall. My impression is that arrangement is far more common than companies actually making sure you get minimum wage every hour.
- kmoser 4y ago
  The IRS assumes servers get a certain amount of tips, so if you don't report close to what they expect, you run a high risk of being audited.
  - seadan83 4y ago
    True. The loophole is that most tips are on credit cards and hence automatically reported. There is no distinction of cash vs CC tips when reporting. So effectively zero dollars in cash tips is being reported. In the 90s I delivered pizzas for one of the big companies. I raised that if I didn't make tips the company was supposed to pay me $5.50 instead of the $3.25 that was my wage. The boss said, ok, but if we do that then you have to report your cash tips" - the "agreement" was quite explicit

thayne 4y ago

That is not unique to Texas.

red-iron-pine 4y ago
Several states. Official Dept of Labor breakdown: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

jdkee 4y ago

Obligatory: https://www.youtube.com/watch?v=M4sTSIYzDIk&ab_channel=Peacock https://www.youtube.com/watch?v=M4sTSIYzDIk&ab_channel=Peaco...

seanmcdirmid 4y ago

In WA (and I think CA) they are required to make state/local min wage ($15/hour) before tips are considered.

joveian 4y ago
Same in Oregon, other than minimum wage being lower (and variable depending on where you are).

red-iron-pine 4y ago

That's if and only if you make enough declared tips to bring you over minimum wage for that period. Otherwise they have to give you minimum. But it also means that if you snag a $40 dollar tip or something you're basically down to $2 an hour for that day. By comparison some states like California requires minimum wage + tips.