Service Workers Had To Pay To Stay Employed
By Llowell Williams for Care2. On paper, federal law in the United States requires all employers to ensure their employees are paid the minimum wage — $7.25 an hour, as guaranteed by the Fair Labor Standards Act. Service workers are legally supposed to earn this amount, whether via direct wages (the federal tipped minimum wage is $2.13 an hour) or a combination of wages and tips. Simple enough, right? In practice, however, this system is ripe for employee exploitation, as a recent U.S. Department of Labor probe in Michigan shows.
The owners of Sophia’s Pancake House, a diner with locations in Kalamazoo and Benton Harbor, Mich., were discovered to have actually required waitstaff to pay $2 per hour from their tips merely to remain employed.