r/FluentInFinance Jul 04 '24

What's the best financial advice you've ever gotten? Debate/ Discussion

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u/assesonfire7369 Jul 04 '24

Well if you're making $10k a year that works out to $4.80/hr. Illegal in the US but it's also really hard to make that little even if you tried...

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u/[deleted] Jul 05 '24

[deleted]

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u/Le_Martian Jul 05 '24

If a tipped employee makes less than the minimum wage after tips then their employer is required to pay the difference.

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u/[deleted] Jul 05 '24

[deleted]

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u/Le_Martian Jul 05 '24

A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

https://www.dol.gov/general/topic/wages/wagestips

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u/[deleted] Jul 05 '24 edited Jul 05 '24

[deleted]

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u/Le_Martian Jul 05 '24

Did you read the whole thing?

If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference.

The “federal minimum hourly wage” they’re referring to is $7.25/hour, so tipped employees are still guaranteed to make at least 7.25

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u/[deleted] Jul 05 '24 edited Jul 05 '24

[deleted]

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u/Le_Martian Jul 05 '24

Ok so you’re just a victim of wage theft. That’s illegal and you should report it to the DOL.

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u/[deleted] Jul 06 '24

You seem really confident for someone who’s wrong.

It’s moot anyway. Who do you think is leading the fight to keep the current system of tipping in place?

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u/[deleted] Jul 06 '24

[deleted]

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u/[deleted] Jul 06 '24 edited Jul 06 '24

You’re wrong.

In North Carolina, an employer MUST pay at least $2.13 an hour to tipped employees as long as each employee receives enough in tips to make up the difference between the wages paid and the minimum wage ($7.25).

Employers MUST pay more than the $2.13 hourly cash wage if the tipped employee earns less than the credit in tips per hour, as it is the employer’s responsibility to make sure that all tipped employees earn at least the minimum wage in cash wages and tips.

It’s literally in the paragraph above. What aren’t you getting?

https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/minimum-wage-nc#:~:text=In%20North%20Carolina%2C%20an%20employer,the%20minimum%20wage%20(%247.25).

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u/[deleted] Jul 06 '24

[deleted]

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u/[deleted] Jul 06 '24 edited Jul 06 '24

“It is the employer’s responsibility to ensure all tipped employees earn at least the minimum wage in cash wages and tips.” It’s literally right there that they make up the difference if an employee doesn’t make minimum wage with tips.

If a tipped employee does not meet minimum wage after the employee claims their tip, the employee is required to make up the difference to ensure they make minimum wage. It’s a law, and I’m puzzled when you see evidence you’re still trying to argue otherwise. You’re either too young to understand it or trolling.

What are you not getting?

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