There has been a great amount of discussion in the past year regarding minimum wages and whether someone who is paid the minimum wage can actually live on this wage. In the hospitality field, the wages received by wait staff can be even lower than the state or federal minimum wage due to the employer receiving a tip credit for the amount of tips that their wait staff receive. No one really knows what the servers actually make; only what is reported. This credit has recently come under fire and has been the subject of many lawsuits across the country, with large employers – Starbucks, TGI Fridays, Applebees, among many – paying out large settlements or judgments due to alleged unfair practices. Perhaps in part to counteract this trend, a number of restaurants have begun paying their staff a minimum wage with no tip credit, or even a “living” wage, well above what state and federal requires.
Photo credit: Lars Plougmann / Foter / CC BY-SA
For instance, diners at Girard Brasserie and Bruncherie in Philadelphia might be in for a surprise when they read the note attached to their bills: “Tipping is not necessary.” The purveyors of this restaurant pay their staff an hourly wage well above minimum wage, and provide health benefits as well. While this has impacted the costs of the food offerings at the restaurant, it portends a trend that may well continue. Check your bill. If the trend has not hit your favorite spot yet, your server may be very unhappy if you guess wrong!