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The problem with laws like these is similar as increasing taxes on corporations, or mandating higher wages by fiat. The implicit assumption is that money is mov
by em500 2y ago
The problem with laws like these is similar as increasing taxes on corporations, or mandating higher wages by fiat. The implicit assumption is that money is moved from the (presumably rich) owners to workers, but economically it's determined by relative price elasticities: if customers' or workers' elasticities are low, the increased costs to the owner can be largely passed through in the form of higher prices and/or lower base wages.
- trashtester 2y agoWhen people tip, they intend that the money received is kept by those they give it to, or at most, shared with the part of the staff actually providing the experience (such as the chef of a restaurant). If a customer provides tip with the intention that it sould go the the waiter or at least the on-duty local staff, but the tip is taken by upper management or the corporation, I see that as deceitful communication, bordering on fraud. I would support a law where the default is that tips are kept by the person receiving the payment and that any tip sharing model in any business is voluntary for ANY employee, and where ANY employee should be free at any time to withdraw from such tip sharing. Basically, this would be a return to the cash based model, where tips were handed over physically to the waiter as a personal transaction between the customer and that individual. If this means more tips for waiters and less for chefs, then either compensate through base pay or provide a way for the customers to explicitly ask that the tip should be shared with the kitchen staff.