The government is changing the rules so that restaurants can’t top up the hourly rate with tips. I disapprove. Most of my arguments are the same arguments I’d use against the minimum wage itself. Jobs that once were economically possible now will not be, resulting in unemployment and failed businesses. Individuals should be free to make whatever contracts they want. If a waiter makes good money on tips and is prepared to waive an hourly rate, why not? In California, I’ve heard from waiters who tell tales of waiters paying to work in restaurants because the tips are so good. Why limit the business models people want to employ?
I always say if I ran a restaurant I’d let the staff keep their own tips. It’s the best way to encourage good service. These new rules would undermine that: if tips are a less important part of the pay waiters get the incentive to earn them is less. If the food costs more to be able to pay the wages, customers will have less money for tipping.
Less interference please.
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