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Why The Practice Of Tipping Has Emerged As A Major Method Of Compensating The Wait Staff Essay

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1. In most restaurants in the United States, waiters receive a large portion of their compensations through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15% tip for parties of eight or more. Using concepts from organizational architecture, discuss a. Why the practice of tipping has emerged as a major method of compensating the wait staff; Tipping has emerged as a major method of compensating wait staff ever since the 1960s when Congress passed the provision within Fair Labor Standards Act legislation which introduced the “tip credit” (Allegretto & Cooper, July 10, 2014). The FLSA provision set the minimum wage for tipped employees at $2.13 per hour, given that the employees would ‘earn’ $7.25 per hour from tips. The government considers employees who earn more than $30 per month as tipped employees. The tipped minimum wage has adversely impacted tipped employees, which includes barbers, stylists, wait staff, doormen, etc., such that they need to provide a high level of service so they can receive generous tips. The tipped minimum wage provision assigns tipped employees to high poverty due to their low income salary levels. b. Why the customer typically decides on the amount of the tip; The customer typically decides how much tipped workers will receive since customer take on the role of the manager while the tipped worker is the employee. The amount of the tip is contingent upon the quality of

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