why is it legal for restaurants NOT to pay minimum wage to wait staff?

In the United States, there are several different minimum wages.

There is the standard federal minimum wage for non-tipped employees, which is currently 5.75 an hour.

There is standard minimum wage for tipped employees, which is $2.13 an hour and has not raised in 18 years.

There are State minimum wages that cannot be lower than Federal Minimum wages, but often are higher.

The concept of tipped servers/waitstaff/waitress/waiters is the fact they make a base wage to cover taxes, and they earn tips. Customers do not have to tip, but the concept is - you receive good to excellent service, you tip. There is no law for tipping. Well, the server accumulates tips, and is supposed to declare these tips to their employer, who then appropriately deducts taxes from their hourly wages, and pays them the remainder of their hourly wage.

When I waited tables, I averaged about $95.00 - 100.00 a night in cash tips on weekdays, and $150.00 - $300.00 a night on weekends. I averaged about $650.00 a week in cash, serving.

My checks were about $65.00 - $80.00 every two weeks. Sometimes I would wait about two months to cash them. I also made it a point to know how to do my job. Serving tables is NOT an easy job, there is much to learn about caring for strangers in a concise, friendly, yet properly distant manner. Those wages were at places like Denny's and IHOP!

There is a seperate minimum wage set by each state for tipped employees. Tipping standards are anywhere from 10% to 20%. If the US was to go to a standard minimum wage where tipping wasn't standard you would simply see your prices in the restaurants go up. In countries where waiters are on salary the cost of the service is figured into the price of the food already. And let me tell you it does not necessarily make the service any better than in the states. My husband is German and we go to Europe often. Some of the worst service I have ever had has been in Europe. Some of the best has also been there but only at 1 and 2 star michelen restaurants where I was more than paying for the service in the price of the meal. I was a server for years in the states and I like the system we have. It allows for persons who want to work hard and give great service extra income and part-time work if needed. And since we don't have free colleges like many countries in Europe it is a really great job to have while going to school.

Because they are tipped employees and they can make up to as much money as they are tipped. It works out great for the employer however I've seen waiters make more than management. They do work thier butts off.

Take for example if an employee waits on three tables an hour. The average check is $30.00. and the average tip percentage is about 12%.

They earn $2.13 an hour.

But each table leaves about $4.00 tip x 3= $12.00 plus $2.13= 14.13 per hour.

Now you see the benefit?

They make less than minimum wage because of the tips so if service is good tip well. Most service seems to be minimal, but the servers don't just stand around; they're busy doing behind-the-scenes work.

because they could care less if you can put food on your table, as long as they have food on theres to make money. People think because you get tips, don't mean a thing. The better you are in your job, you make more tips, the worse you are, the less you get. But the fact of the matter is, people aren't tipping allot these days, because the cost of living is sky high, and the wages stay the same. So tell you manager, you want a cost of living raise,

I know for a fact that the banks around here charge businesses 1.00 everytime they take a debit card, let alone a credit card. I also know that credit card companies charge 5-10% to the businesses. I am surprised that your boss isn't charging the customer instead of his wait-staff, and I am not sure that it is legal.

They're not "getting away" with anything. No one holds a gun to the heads of the waiters and waitresses who apply for and accept jobs there. They know the rules of the game going in and agree to it.

If you want to work for less than minimum wage + tips, then do it. If you don't, then find another job. Simple.

they should pay minimum wage but wait staff should also report their tips and pay income tax on it. neither of these happens, correct?

Completely legal and yes, its because of tips

I think they factor in tips, but I dont' know. You ought to report your employer to the labor board of your state.