in the US it's been used to supplement underpaid workers
Except that's not even true. Restaurants are required to pay minimum wage. Wage+tip >= minimum wage. If tips are low, the restaurant has to make up the difference. Basically, we've been conned into subsidizing the restaurant owner.
That's a very strange view. The entire job is premised on a tip, and we all enter the situation knowing that. There's no deception. The expectation in NYC is that these jobs pay far more than minimum wage, and it is one reason restaurants have such fantastic service.
It's just the system. It isn't a con. It's a system that ensures money goes to workers far in excess of what an owner would likely negotiate in other systems, so even though it is annoying, it is interesting.
Minimum wage can still be underpaid, depending on the area the worker lives in. That's why there's been recent discussions about increasing the minimum wage.
It's the same discussion, as I was referring to "underpaid" in terms of a living wage, instead of "underpaid" in terms of an illegal wage. Also, what you suggested could only work if the restaurant owners knew how much their staff were being tipped, and for tips that go directly to the waiters that's not likely to be available information.
Of course they know. Employees are required to report their tips amounts, as the employer is required to withhold SS/Medicare and pay any shortfall. What you are claiming is the entire industry is breaking the law - I suppose that's possible, but I find it unlikely.
> "What you are claiming is the entire industry is breaking the law"
No, that's not what I'm claiming. I'm claiming that 'minimum wage' does not necessarily mean 'living wage', and it is a lack of a living wage which increases the social pressure to tip. If all employees in the US were paid a living wage then the need to tip would decrease.
Except that's not even true. Restaurants are required to pay minimum wage. Wage+tip >= minimum wage. If tips are low, the restaurant has to make up the difference. Basically, we've been conned into subsidizing the restaurant owner.
https://en.wikipedia.org/wiki/Tipped_wage_in_the_United_Stat...