B) businesses have to start paying their staff better wages
B) businesses have to start paying their staff better wages
Historically we haven't see it go the other way
Tipped employees must receive a minimum wage of $2.13 per hour, known as a cash wage. That cash wage is combined with tips to reach the federal minimum wage of $7.25 per hour. Employers can credit up to $5.12 per hour in tips against a worker's earnings. If an employee’s wages (at least $2.13 per hour) plus tips is less than $7.25 per hour, their employer is required to make up the difference. Tips are considered a “tip credit,” which allows employers to pay employees below the federal minimum wage.
The minimum wage in PA was 2.25 for waitstaff in 2000. Currently its 7.25/hr. I think we can all agree that waiting on a table is a little more complex than bagging groceries esp when you consider this wage law applies to any restaurant in any category.
https://www.nerdwallet.com/article/finance/tipped-minimum-wa...