About a year ago, the owners of several high-end restaurants in California and New York decided that they would institute a strict “no tipping” policy for all restaurant employees and instead pay the servers and other workers a higher hourly wage.
This no tipping model was created as a way to help workers earning what is often referred to as a living wage. The model was based on the typical plan in which restaurant workers get paid. Employees earn a very low minimum wage (typically less than $3 per hour) and then earn tips on top of that hourly wage. If the server does not earn enough in tips to equal the standard minimum wage for workers who do not earn tips as a substantial part of their wages, then the employer pays the difference. Continue Reading ›