The Internet has collectively stepped up to bring up a college bar in which a young woman’s salary was $0 every week.
The now-viral post garnered 6,600 votes and 500 comments under the headline “My daughter got a job at a bar and her pay is zero every week. What the hell”. redditor @7dayweekendgirl shared a post on the Anti-Job subreddit, and it’s been attracting attention ever since.
By law, tips are wages and are the property of the worker only. According to Work Force, there is no legal scenario in which an employer receives a portion of a tip from an employee, as this is wage theft.
Under the Fair Labor Standards Act, an employer is required to pay an employee $2.13 an hour in wages on the basis that what the employee receives in tips is equivalent to the federal minimum wage of $7.25. But if a worker earns less than the federal minimum wage, along with the $2.13 added, the tip must be paid to “fill the gap” to meet federal requirements.
Employees need to be aware that abuse by employers is taking place. Tax evasion is underpayment or non-payment of taxes and is illegal. According to Nolo.com, one of the ways businesses try to avoid paying payroll tax is by falsifying payroll tax returns.
The original poster’s daughter (OP), who is 22, works as a weekend waitress at a “cash-only bar” in Boston, and she mentioned to her mom that her pay is “zero every week.” The young woman’s mother looked at the receipt and saw that the bar indicated that a woman’s tip is 20 percent of her sales, regardless of how much she actually gets in her tips.
“So, after deducting federal and state taxes, she earns nothing at the bar by the hour. Nothing,” said the OP. “She says she was told that this is how they always do it. She brings home about $100. [to] $120 tip per shift, and her sales often top $1,000. So, the bar says she earns $200 in tips per $1,000 in sales, but she only earns half that amount.”
The OP was a bartender “years ago” and she could announce how much tips she had, not the bar management. She asked if this is how it works now, and if it was “normal” or “legal”.
The woman’s daughter also mentioned that they don’t pool tips and they are “encouraged to tip bartenders and waiters.”
A lot of comments appeared under the viral post, and many people do not consider the actions of the bar to be legal. She pays taxes [the] money she doesn’t make,” Redditor said. “And the bar doesn’t compensate when she doesn’t earn enough. They need to be reported.” Another person thought it “looks like your daughter is being robbed.”
A number of people feel that businesses should also be reported on their practices. “It’s not legal,” the user said. “I would report them to the IRS and the labor board.”
Another user pointed out that “even in the least civilized states” a worker “has to pay the minimum wage”. [of] $7.25 There is a tip wage rate [of] $2.13, but combined (with tips) it should be at least $7.25. She is being robbed.”
Some people have worked in similar conditions before. “I worked at a bar that did this,” the user said. “Eventually they got checked out and they had to pay me thousands of dollars which they cut me off. It’s illegal”.
Tax evasion was also mentioned, and the Reddit user believes the woman should “report” the bar “for tax evasion,” adding, “They don’t pay taxes on about eight percent of their profits every week for every single worker.”
Another Reddit user says it sounds like the bar is “inflating her wages to reduce their tax bill. I would report this to the IRS and see if your daughter can make money off the whistleblower policy.”
However, some say that this is a common practice. “This is a common thing, I worked as a waiter for years and usually didn’t get a check because my tips collected more taxes than could be deducted from my small hourly pay,” the user said.
But another user weighed in on a similar comment, stating, “The check ended at zero because it was completely eaten by FICA and other (legal) deductions are legal. income.”
Another Redditor believes that a woman “should pay taxes on everything that is claimed. If she (or her manager) demands more than she received, she pays taxes on [the] she never received any money. This is tax fraud.”
Newsweek reached out to Redditor @7weekendgirl for a comment.
This is not the only viral moment associated with work situations. The New Zealander was confused by the work culture in the United States. The company’s rejection letter was viewed online as condescending. In addition, the recruiter was ridiculed for her anger at the applicant’s current salary.