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Tipping has become a hotly debated topic in major restaurant markets across the United States. Furthermore,...

Tipping has become a hotly debated topic in major restaurant markets across the United States. Furthermore, a specific aspect of tipping, tip-pooling, is the subject of a recent lawsuit that may even make its way up to the United States Supreme Court before it is fully adjudicated. States may allow businesses to maintain different rates of pay based on tipped and non-tipped employees’ status. Some states do this by allowing a tip credit for employers who employ tipped employees, and some do not. Some independent and corporate restaurant operations have eliminated tipping entirely or gone to a system of set tip percentages that are applied, in the form of a service fee, to every sale involving tipped employees. Complete the following in regard to this:

Research wage and tipping laws at the federal and state levels, and answer the following question:

Should tip credit legislation be eliminated entirely for the restaurant industry?


Give support for your answer as to why tipping should be eliminated or permitted to remain as it is now in the United States.  


Your response should offer a recommended concept and supporting information.


Use proper citation of sources and APA formatting


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Answer #1

Tip credit legislation should be implemented across the country entirely for the restaurant industry.

The legislation should make it mandatory for the restaurants to pay the minimum wages apart from the tip which they are entitled to get based on the customers.

According to federal labor law, restaurants and other such establishments in this industry are allowed to pay, staffs, servers, bartenders, and other such workers in the country an abnormally low wage until their total earnings, along with tips, add up to at least the minimum wage.

This means that staffs, waiters and workers alike are receiving approximately $2 to $3 an hour depending on each state's minimum wage.

With such abysmally low wages, servers in these positions are fully dependent on consumers to make up the difference to pay their salaries.

Tips should not be eliminated, as it helps lower rungsof people to earn and help support themselves and their family members.

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