Last-Calligrapher293 t1_j4oiyl0 wrote
Reply to comment by Diet_Coke in Shyndigz on W Cary not paying out tips. by itzaxumzn
Somewhat true. Say I had a really gnarly week serving to the point I made $5/hr. Legally, my job has to pay me minimum wage. So they bump it up, tax it. On the flip side, say I made $50/hr the next week but most of it was credit card tips. Those tips would be in my next check(at most, not all restaurants) and those tips would be taxed. That helps the IRS keep track of money industry people make, that way someone can't say "oh look, I only made x amount this year, I deserve extra tax refunds."
It is highly encouraged in most restaurants because of that to also report your cash tips and not get the IRS up your booty
revel911 t1_j4r1fst wrote
The issue is here at shyndigz there are no waiting staff anymore so just counter people making a standard hourly wage.
Last-Calligrapher293 t1_j4r9qdx wrote
Regardless, still very very very illegal for owners to keep tips. They could take the tip option away if they truly want to, but instead the owner is lining their pockets with money intended for staff.
revel911 t1_j4sftkq wrote
How is it illegal? Is there a law that says what tips has to be used for?
Last-Calligrapher293 t1_j4sue43 wrote
So many people have linked all the links in other comments but here is one since you don't want to read thru those https://www.dol.gov/agencies/whd/flsa/tips
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