Could you work for $2.13 an hour?

W

willair

This is one of the depressing aspects of the lives of people now in the USA ,most in Australia are unaware on what's happening over there but if you have the time watch this,after going over and looking at the amount of homeless on the streets,, people working in fast food out-lets going into the car-park and asking in a very angry and dangerous ways why they did not get the 5-10% tip when they don't tip makes one think could it happen here??..

http://www.abc.net.au/foreign/content/2013/s3874510.htm
 
I don't feel sorry for them.

They chose to work for tips. Depending on how good they are at their job, they can make a lot more than minimum wage.
Don't forget, if their wages are too low, they will qualify for Food Stamps, and probably a whole host of other perks.

A co-worker of mine worked at a bar on weekends. It wasn't unusal she said, to make $500 in tips.
 
I thought the owner could only pay such an hourly rate if it was fairly certain that the employee could make the next $5/hr in tips. Therefore the statutory minimum wage is around the $7.20 mark.

A fairer comparison in my opinion is the local purchasing power of that minimum wage. It probably isn't that much different to our minimum wage and its purchasing power.
 
Yes as Kathryn said that clouds the issue because it ignores the huge tipping culture in North America. I mean even the busboy in a hotel gets $2 or so PER bag. How many guests come per hour? Times that by the bags they own, and you got a healthy wage.
 
I saw a docco about a Mexican guy who worked as a valet.

He worked 7 nights per week, and the hours were unlimited.

He was earning close to 300k per year.

Not the normal scenario, of course, but still possible in some areas. L.A definitely, due to volume of high-end cars.

Tipping over there is expected, and in many places they now simply add it to your bill as a charge.
 
Ostraylia said:
I thought the owner could only pay such an hourly rate if it was fairly certain that the employee could make the next $5/hr in tips. Therefore the statutory minimum wage is around the $7.20 mark.

A fairer comparison in my opinion is the local purchasing power of that minimum wage. It probably isn't that much different to our minimum wage and its purchasing power.
Click to expand...

Incorrect. There are many occupations excluded from that minimum wage. The federal minimum is $2.13 /hr for such & the IRS charges tax on expected earnings from tips in these occupations whether they are declared or not..... There is an average rate that they use for this purpose based on hours worked, derived from the $2.13 /hr base rate paid.
 
Indifference said:
Incorrect. There are many occupations excluded from that minimum wage. The federal minimum is $2.13 /hr for such & the IRS charges tax on expected earnings from tips in these occupations whether they are declared or not..... There is an average rate that they use for this purpose based on hours worked, derived from the $2.13 /hr base rate paid.
Click to expand...

Hmm okay, had a quick look around and from I read, it seems as though there are a multitude of different minimum rates set, mostly by the state. What is common is the two classifications (adult wages) of minimum wage. Those which are apart of the tipped labour force and those which aren't.

It also appears, like you are saying, that the IRS certainly expects those in the tipped labour force to still be earning equivalent non tipped labour force minimum wage after being tipped (declared or not).

The boss (though I wasn't able to find a hard line on a gov site) is suppose to make up the difference if their tipped labour force doesn't meet the required minimum (non tipped labour minimums).

Am I on the right track here?
 
maybe they need to accept that their culture is flawed and address it. employees need to earn 'x' to survive and hoping to get 50c from one bloke and $5 from the next and then getting angry when you don't get it - it's ridiculous and is a problem of their own doing, they can fix it if they want. why we would need to concern ourselves with this issue is beyond me
 
kathryn d said:
I don't feel sorry for them.

They chose to work for tips. Depending on how good they are at their job, they can make a lot more than minimum wage.
Don't forget, if their wages are too low, they will qualify for Food Stamps, and probably a whole host of other perks.
s.
Click to expand...

Oh wow they'd get paid $2 an hour AND qualify for food stamps? lucky them!
 
Ausprop said:
maybe they need to accept that their culture is flawed and address it. employees need to earn 'x' to survive and hoping to get 50c from one bloke and $5 from the next and then getting angry when you don't get it - it's ridiculous and is a problem of their own doing, they can fix it if they want. why we would need to concern ourselves with this issue is beyond me
Click to expand...

Tipping is a good thing, disagree that it is flawed. Staff costs are a huge expense, tipping simply transfers that cost to customers. This means more businesses can stay afloat instead of going under, that has to be good for the economy.

Look how cutthroat the restaurant business is in this country, not many survive. A tipping culture would have saved them.

What does annoy me to no end is the expectation of tips in Australia despite wages being structured differently. I dont tip in Australia mainly because of this but also because Aussies have NFI about service.
 
robbiejuve said:
Tipping is a good thing, disagree that it is flawed. Staff costs are a huge expense, tipping simply transfers that cost to customers. This means more businesses can stay afloat instead of going under, that has to be good for the economy.
Click to expand...

you can't magic away the cost, either the customer pays or the staff don't get paid - at least with decent min. wages it is structured and there isn't this stupid pretence lingering
 
Ausprop said:
you can't magic away the cost, either the customer pays or the staff don't get paid - at least with decent min. wages it is structured and there isn't this stupid pretence lingering
Click to expand...

But Americans know that tipping is a part of the custom. Australians are notoriously the worst because we don't have tipping here. So most of the time there is no issue.
 
sanj said:
Oh wow they'd get paid $2 an hour AND qualify for food stamps? lucky them!
Click to expand...

Yes, lucky them.
Depending on the size of the family, that could be a lot of money.
There are aso lots of other benefits they may qualify for..medical for the children, rental assisstance, public transportation,utilities and phones....

When they are paid tips, they may be required by law to declare them as income, but I'm sure most don't.
 
kathryn d said:
Yes, lucky them.
Depending on the size of the family, that could be a lot of money.
There are aso lots of other benefits they may qualify for..medical for the children, rental assisstance, public transportation,utilities and phones....

.
Click to expand...

Amazing, theyre practically millionaires! I wish i had to survive on foodstamps.
 
Aaron_C said:
Well I didn't create the thread. I agreed with kathryn that the number is misleading as tips are part of the effective minimum wage.
Click to expand...

yep so you are saying the assertion of the thread is incorrect.

either way, it's a whole lotta stuffin around for the same outcome. IMO if their system is working then stop whinging, if it isn't then fix it
 
Ausprop said:
yep so you are saying the assertion of the thread is incorrect.

either way, it's a whole lotta stuffin around for the same outcome. IMO if their system is working then stop whinging, if it isn't then fix it
Click to expand...

I guess it's all about mindset. I actually liked the system when I was traveling in the USA. 10% tip is 'bad' service, 15% is standard and 20%+ is for really good service. The service is noticeably better over there as well.
 
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