• atrielienz@lemmy.world
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    1 year ago

    It’s technically tax fraud, but yes. You could be. Back of house staff can include managers, cooks and dish washers, and even the hostess. Those people aren’t paid the $2.75 to $3.75 that the wait staff are paid. They’re considered hourly employees and they fall under different pay requirements under the law. A business that doesn’t augment the amount of pay for wait staff not making the federal minimum wage ($7.25) an hour in tips, that business is committing wage theft. To then be paying non-wait staff out of the wait staff tips is illegal as part of the wage theft. But since the company is already committing wage theft there’s no reason not to commit tax fraud to cover up the wage theft.

      • atrielienz@lemmy.world
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        1 year ago

        Please read the above thread because I recognize that it is illegal, but so are tax fraud and wage theft.

        • FuglyDuck@lemmy.world
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          1 year ago

          I did. The thing is tip pools themselves aren’t inherently illegal. They’re doing illegal things with the tip pool. There is a distinction there.