Where do they pay wages that low?
Currently, the U.S. federal government requires that tipped employees are paid at least $2.13 per hour in direct wages, as long as this amount equals the federal hourly minimum wage when combined with tips. If the employer’s direct wages of $2.13 per hour plus the employee’s tips do not equal the federal minimum hourly wage, the employer must make up the difference.
These are the 2022 rates for states where the tipped minimum wage is the same as that required under the federal Fair Labor Standards Act ($2.13 per hour):
Alabama: $2.13 tipped employee minimum wage
Georgia: $2.13 tipped employee minimum wage
Indiana: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Kansas: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Kentucky: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Louisiana: $2.13 tipped employee minimum wage
Mississippi: $2.13 tipped employee minimum wage
Nebraska: $2.13 tipped employee minimum wage; $6.87 tip credit (basic combined cash and tip minimum wage rate = $9.00)
North Carolina: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Note: A tip credit is not permitted in North Carolina unless the employer obtains from each employee, either monthly or each pay period, a signed certification of the amount of tips received.
Oklahoma: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Note: For businesses with 10 full-time employees at any one location who have gross annual sales of $100,000 or less, the basic minimum rate is $2.00 per hour.
South Carolina: $2.13 tipped employee minimum wage
Tennessee: $2.13 tipped employee minimum wage
Texas: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Utah: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Virginia: $2.13 tipped employee minimum wage; $8.87 tip credit (basic combined cash and tip minimum wage rate = $11.00)
Wyoming: $2.13 tipped employee minimum wage; $5.12 tip credit (basic combined cash and tip minimum wage rate = $7.25)
Keep in mind that Alabama, Louisiana, Mississippi, South Carolina, and Tennessee do not have state minimum wage laws. And while Georgia has a state minimum wage law, it does not apply to tipped employees.
Everything you need to know about changes to tipped minimum wage, and how your restaurant can deal with increased labor costs.
www.touchbistro.com
Read the linked article. It's damn near infuriating...