Customers subsidize server wages

Posted 4.21.2018

Restaurant employers invest in their businesses to provide the conditions that enable employees to earn tips. Decades ago Congress created the tip credit system and its safeguards for servers because lawmakers recognized that in the United States servers receive tips due to the jobs that restaurants create. The tip credit system incentivizes servers to deliver excellent service and to be compensated well for that service. By keeping labor costs in check, restaurant owners are able to invest in their businesses to continue improving the atmosphere that enables servers the most tips possible.

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