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It only works because its been around long enough that there is a culture of tipping for service, to the point it's practically an invisible tax on each meal (granted, with the option to avoid it if you really want/have to, but is considered negative socially)

Elsewhere in the world, there is much less of a tipping custom, and wages for service staff tend to reflect that.

Isn't there some kind of US law that requires restaurants to pay the difference between wage+tips & minimum wage if the tips share is low enough?

(OTOH, I recall reading somewhere about people paying huge sums (order of $10's of K) for high-profile service jobs like Maître d' at a prestigious hotel, or head waiter in a high-class restaurant, due to the quantity earned in tips)



Isn't there some kind of US law that requires restaurants to pay the difference between wage+tips & minimum wage if the tips share is low enough?

There is but that doesn't mean restaurants necessarily follow said law. A lot of servers don't really have any means of actually properly enforcing it without just straight up losing their job in the best case so, in practice, you find people just staying silent as they get shafted.


You're correct. If a waiter does not meet minimum wage with tips, the employer is required to pay the difference. I am not sure how often this is actually used though. It would seem easy to brush off and ignore.




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