Please pardon me for going a bit off topic.
As a former server, I feel obligated to weigh in here. There are several levels of minimum wage. Federal non-tipped, Federal tipped, and the state equalivents. Tipped employees are required to report tips received and are taxed on the same. We all know this is a cash business and not everyone is scrupously honest. That said the government requires that tipped employees report a minimum of 8% of sales as tips. Taxes come out of very meager paychecks. Highly tipped people sometimes don't make enough salary to cover the taxes taken from paychecks.
Ah, you say, but I always leave 20%...what about the other 12?
Most servers are required to divy their tips up. Usually the bartender gets a % of liquor (and sometimes soda) sales, bussers get a %, the kitchen expediter gets a flat rate, and in upscale restaurants, the front and back waiters have a hand in the tip pool.
Then there are the smart servers, they claim all their credit card tips. They're traceable should one get audited, and often equal a lot more than 8% of sales. Really smart servers keep a log of what they earned, what they tipped out, and what the difference is.
See if this makes sense, it's taken directly from the Department of Labor web site.
Jurisdiction:FEDERAL: Fair Labor Standards Act (FLSA)
Basic Combined Cash & Tip Minimum Wage Rate $5.15
Maximum Tip Credit Against Minimum Wage$3.02
Minimum Cash Wage $2.13
Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified): More than $30
In Illinois, if a worker averages more than .75/hr in tips, the employer can take credit against their salary. (That means pay them less)
Illinois
Basic Combined Cash & Tip Minimum Wage Rate $6.50
Maximum Tip Credit Against Minimum Wage $2.60
Minimum Cash Wage $3.90
Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified): $20
Either way, wages are pretty low and most employees get neither medical benefits nor paid vacations. Union workers don't get a huge salary bump but they DO get benefits.
Diannie