I don’t think you know how numbers work. Why would they be paying coworkers out of a tip that never existed?
Comment on Restaurant Bill
Vox@lemmy.blahaj.zone 7 months agoat a lot of places tips are split between front and back of house and those tips are based on the price of the meal, not the “tip” that was given. This results in many servers losing money and having to pay coworkers out of their own pocket on big groups or expensive bills that either don’t tip at all or only tip something like 10%.
I’m not advocating for this system at all, I just wanted to share some more info on how/why tipping works the way it does (in the US at least).
Diasl@lemmy.dbzer0.com 7 months ago
KairuByte@lemmy.dbzer0.com 7 months ago
What percentage tip results in negative money?
atrielienz@lemmy.world 7 months ago
It’s a tip pool. So for instance I serve a meal to a couple. The meal is $50. They tip 10%. That split means I pay (for instance) the bartender out of the $5 tip $2.50. If I get another table that orders drinks and tips nothing I end up splitting nothing. But if I work with 4 other back of house people and they each get an equal percentage of that $5 then I get a dollar. But then that dollar is taxed because tips are taxed. If the company has a policy for shares tips pooling I could legitimately make $100 in tips and not receive $100 in tips. Technically that would be receiving negative tips because what is earned vs what is paid out is so drastically different.
KairuByte@lemmy.dbzer0.com 7 months ago
That isn’t negative tips. The lowest you can make in tips is $0. Even when tip pooling, the lowest you can make is $0, which requires no tips what so ever to have been given. There is no 100% tax rate, and you are at no point ever paying into the tip pool out of your own pocket.
atrielienz@lemmy.world 7 months ago
I understand what you’re saying. But for you who is now down from $5 to $2.50 to a $100 that is the. Taxed you’re effectively making less money than you earned. That’s why you can have negative net even while making take home pay.
But think about what might happen if the bill is paid incorrectly in cash. The company will absolutely take cash tips to compensate in the event that you or someone else messed up when counting the cash or giving change or whatever. With tip pools it’s unlikely. But it has happened.