How is it that restaurants and strip clubs are not violating Federal labor laws with how they played waitstaff and strippers?

Restaurants pay servers less than the minimum wage and with the exception of certain places requiring a 10 to 15% charge to be mandated on the bill for gratuity for parties 8+ people the salary is not guaranteed and it is possible to work over 40 hours and make less than minimum wage.  With a strip club the dancers have to pay a club fee just to dance, some half the pay the Jukebox to dance, some have to tip the DJ,  a portion of money they get for VIP dances and other dances of that nature goes to the club. With being a stripper or working as a wait staff you're literally in a feast or famine profession and there's no guarantee how steady your income is and there's no penalty if the employer pays you less than minimum wage or in the case of strippers if you don't get paid because customers aren't showing up

15 Answers

  • 1 month ago

    Tipped employees like servers can be paid less than standard minimum wage with the stipulation that if the tips don't add up to minimum wage, then the employer must make up the difference. Unfortunately, there is room for abuse in these situations, and except for large franchises, which would be targets for class action lawsuits, there is some cheating. For example, the restaurant owner might collect all the tips from credit cards, and pay the workers minimum wage, even though the tips far exceed minimum wage. Especially in the present environment, enforcement is weak.

    Some states have their own wage laws beyond the federal. California, for example, has a higher minimum wage than Federal, and there is no exemption for tipped employees. Servers must be paid at least minimum wage, and must get all of the tips (subject to pooling, such as giving a percentage of tips to the chefs, busing staff, etc). There is still abuse.

    I don't know about stripper compensation.

  • 1 month ago

    There is only a penalty if the combined wages paid plus tip income is not at least the federal minimum wage. It works no different in a strip club than it does in any business where workers get tips. The federal minimum wage for tipped employees is $2.13 per hour for anyone who earns $30 or more in tips in a MONTH. Most strippers earn more than that in tips in half a shift.

  • Judy
    Lv 7
    1 month ago

    The law requires employers to make up the difference to bring the employee up to making minimum wage if the tipped wage plus tips don't do it. Minimum wage does not apply to contractors, and strip club dancers are generally contractors.

  • 1 month ago

    By paying for your are deemed an independent contractor, just like a hair dresser.

    Servers are excepted in that they are expected to make minimum wage when tips are added to their wage (which is absurdly low). If they don't earn minimum wage, the business owner needs to make up the difference.

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  • 1 month ago

    Unfortunately restaurant servers are paid less because their tips are supposed to bring them up to at least minimum wage. Ditto for ANY tipped employee (bartenders fall into this category as well).

  • Eva
    Lv 7
    1 month ago

    Servers have what is called a "tipped" wage. There is a tip allowance that's figured into their wages. Most make far more than minimum wage when you add their tips in. If strippers aren't making money at the club they're working at, they move to a new club. Again, they make far more than minimum wage and probably don't claim it all either.

  • edward
    Lv 7
    1 month ago

    Strippers are not employees they are classified as general contractors, that’s how they are able to keep a lot of the money they make. As a bartender i could make $500 in tips alone a night, i was also paid minimum wage but i was not an employee of the clubs i worked in. I paid to handle the bar and walked out with more money

  • Anonymous
    1 month ago

    "it is possible to work over 40 hours and make less than minimum wage"

    Your understanding of the law is incorrect. Federal law requires that the sum of the server's wage plus tips be at least as much as minimum wage. If the tips do not bring the server's wage up to minimum wage, the restaurant is legally required to make up the difference.

    There are ZERO servers in the USA who legally make less than minimum wage.

    Yes, commissioned sales jobs tend to be feast or famine whether one is selling lap dances, cars or real estate. Don't like it? Don't work in sales.

    • lando1 month agoReport

      When have you ever seen a restaurant or a strip club reimburse an employee who did not make the equivalent of minimum wage for 40 hours of work or more

  • 1 month ago

    They are not in violation of Federal labor laws because there is actually an exemption in the laws for waiters (and some other positions.) Now, whether there should be such exemption is another question. Personally would prefer to pay the little bit more for my meal and not feel obligated to pay a tip. But then I also give up some of my control over the level of service I get if I do not have the power of deciding their wages by tipping. So it goes both ways.

    Having had several of my children who have worked as waiters, they generally average more than minimum wage from their jobs. But you are right that they are not guaranteed that. Usually for every person who does not tip, there will another who is generous. And it evens out over the course of a week.

    My youngest son was offered a management position more than once and turned it down each time because he was making more off the tips then he would have made on salary as management. (But it was a high end establishment where most people did tip well.)

    You are correct that it can be "famine or fest". But it is nor a violation of the labor laws. Whether it is fair is another question....

  • 1 month ago

    Because 'murica.

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