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Aloisius07/31/20258 repliesview on HN

I live in California and this isn't true here. All restaurant workers receive at least minimum wage before tips. In my city, that's $19/hour with health insurance.

Of course, you're still expected to leave a tip and suggested minimum is now 20%, plus even McDonalds is charging $15 for a 4 oz burger, so I rarely go out to eat at places that expect a tip anymore.

I'm not sure why they specifically should be tax exempt though. Cash tips often were, practically speaking, so a lot of tax evasion was happening, but it still seems odd to single them out.


Replies

jrockway07/31/2025

Yeah, there is a lot of shadiness going on these days. I don't think tips should be requested in any sort of transaction where the employee gets paid more than minimum wage. Restaurants always had this weird system where you could avoid paying your employees if they were tipped, so it was drilled into everyone's head "you're stealing from poor innocent workers if you don't tip 20%". But this is not the case for most workers, and so tips should be truly for exceptional service in cases where the job position is on a normal pay scale.

This isn't to say that I don't tip when not required to or that I only tip people I think are being underpaid, but ... things have gotten a little out of control. If I feel like tipping, I'll tip. I do not need a prompt suggesting anything when it's not coming out of the employee's takehome pay.

I hate to say it but I think some government regulation is required here.

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toomuchtodo07/31/2025

Seven states do not have a separate, lower minimum wage for tipped employees. Instead, they require employers to pay tipped employees the full state minimum wage, regardless of tips received. These states are Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington.

Sixteen states use the federal tipped minimum wage of $2.13: Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia, and Wyoming.

https://www.epi.org/minimum-wage-tracker/

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godelski08/01/2025

  > I live in California and this isn't true here
I made a longer comment in the main thread[0] because I think there's a tendency for conversations about tipping to degrade as people are making different assumptions based on the different laws of where they're from or grew up.

To be clear:

  - Any worker that is not making *at least the state's minimum wage* (including tips) is suffering from wage theft. (with the exception of Georgia (WTF)) 
  
  - Any worker not receiving a positive valued check are suffering from wage theft
    - Tips only count as a credit and no state lets tips act as a 100% credit to the wage[1]. Credits may be amortized across "workweek" pay.
We always need to make sure we distinguish a conversation about wage theft and a conversation about tipping. I think they are unknowingly being used interchangeably (or as an assumption in a conversation)

[0] https://news.ycombinator.com/item?id=44751537 (sources linked here)

[1] Federal only lets max credit of 70% of min wage. Some states go up to ~75% of min wage, but their minimum wage is higher than federal.

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radpanda08/01/2025

> even McDonalds is charging $15 for a 4 oz burger

Jeez, where is this? According to the famous McCheapest map the most expensive Big Mac in America is about 8 bucks. Have prices really shot up that much recently?

https://pantryandlarder.com/mccheapest

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wakawaka2808/01/2025

>Of course, you're still expected to leave a tip and suggested minimum is now 20%, plus even McDonalds is charging $15 for a 4 oz burger, so I rarely go out to eat at places that expect a tip anymore.

Don't tip, especially 20%, for over the counter service. That is ridiculous.

>I'm not sure why they specifically should be tax exempt though. Cash tips often were, practically speaking, so a lot of tax evasion was happening, but it still seems odd to single them out.

It's just a gimmick to get votes. The theory is that poor people tend to be the ones that work these jobs, they need a break, and it's not a policy that would cost very much anyway. There is a cap on the tips and most cash tips were going unreported anyway.

kelnos08/01/2025

I'm happy that CA doesn't set a lower min wage for tipped workers, but the problem is that in many/most places in CA, $19/hr is still not a living wage, so the tips are more or less required to keep those workers housed and eating.

A living wage in most population centers in CA is nearly $30/hr.

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Aunche08/01/2025

It's actually even worse than that. The $19/hr and health insurance comes from increasing menu prices, so with flat percentage tips, you're paying more purely for the privilege of paying more.

msikora07/31/2025

California doesn't have a special minimum wage for tipped professions? When I was waiting tables a long time ago I think my pay was $1.95 an hour. It was usually just enough to cover tax on tips (the ones we admitted).

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