this post was submitted on 24 Aug 2026
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Oh don't worry, you are! In many states, the first chunk of tips goes to cover the employee contribution. Essentially the waiter makes either tips or hourly, which ever is higher, so until the tips are larger than the base pay, your tips are really just saving the employer money. Does this make sense? No. Is it common in states not called California and New York? Absolutely!
That's not quite how that works. The 2.13 is guaranteed. Employers are also required to bring that up to 7.25, if there aren't enough tips.
But, yeah, the first 5.10 in tips each hour really just goes to reducing the employers burden, not increasing the servers take-home.
Required to, but usually don't. Wage theft is the most common form of theft and that's before taking into account most of it goes unreported.
Oh absolutely, even if they don't do outright wage theft, they can often find a reason (or not in right-to-work states) to dismiss any employee that won't claim sufficient tips (whether customers left those tips or not).