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Minimum Wage Thread


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#881 golden_valley

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Posted 23 April 2019 - 01:16 PM

View PostJackD, on 23 April 2019 - 12:55 PM, said:

"struggling business". If it can't pass through costs to customers, perhaps it isn't a viable business.

I think that about a lot of things that the Chamber of Commerce and small business owners claim about taxes and regulations. Granted regulations that overlap and are no longer relevant but still on the books is a problem but that can be fixed.

#882 Traveler

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Posted 23 April 2019 - 01:58 PM

Sorry if my sarcasm didn't come through. But seriously, are wages that large a part of the restaurant business?

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Labor should be less than 30 percent of the revenue
So if labor goes up 20%, that is a 6% increase in costs. Given that most wait staff relies on tips, raises to MW would be quite a hit. Something needs to be done about that.
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#883 golden_valley

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Posted 23 April 2019 - 02:03 PM

View PostTraveler, on 23 April 2019 - 01:58 PM, said:

Sorry if my sarcasm didn't come through. But seriously, are wages that large a part of the restaurant business?
So if labor goes up 20%, that is a 6% increase in costs. Given that most wait staff relies on tips, raises to MW would be quite a hit. Something needs to be done about that.

Yeah the business model on restaurants needs to be re thought. Why not just pay staff hourly and forget about subjecting them to the vagaries of the public's lack of tipping behavior. And, as my son pointed out when he was a bus boy, the waiter staff didn't work nearly as hard as the bus people did and the kitchen staff too, but bus people always end up with a small share if tips are pooled.

#884 Traveler

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Posted 23 April 2019 - 02:39 PM

View Postgolden_valley, on 23 April 2019 - 02:03 PM, said:

Yeah the business model on restaurants needs to be re thought. Why not just pay staff hourly and forget about subjecting them to the vagaries of the public's lack of tipping behavior. And, as my son pointed out when he was a bus boy, the waiter staff didn't work nearly as hard as the bus people did and the kitchen staff too, but bus people always end up with a small share if tips are pooled.
So it should be a simple matter to raise the prices and let the customers know that the 20% default tip is not needed. That easily covers the revenue side right there.
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#885 golden_valley

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Posted 23 April 2019 - 02:49 PM

View PostTraveler, on 23 April 2019 - 02:39 PM, said:

So it should be a simple matter to raise the prices and let the customers know that the 20% default tip is not needed. That easily covers the revenue side right there.

Works for me. For a while some restaurants in San Francisco added in a % charge to help cover health insurance benefits for their employees and just today I saw some local (admittedly high end) restaurants add in a 2.5% charge for "kitchen equity" for the unseen people who toil away in the hot kitchens.

#886 D. C. Sessions

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Posted 23 April 2019 - 08:46 PM

View Postgolden_valley, on 23 April 2019 - 01:16 PM, said:

Granted regulations that overlap and are no longer relevant but still on the books is a problem but that can be fixed.

But if they get fixed, what will they use to prove that the others are even worse?
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#887 LFC

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Posted 24 April 2019 - 10:21 AM

View PostTraveler, on 23 April 2019 - 02:39 PM, said:

So it should be a simple matter to raise the prices and let the customers know that the 20% default tip is not needed. That easily covers the revenue side right there.

That could never work. Oh, wait. Except maybe here, here, here, here...
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#888 LFC

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Posted 01 May 2019 - 04:33 PM

Trump's Labor Dept. to gig workers: "F*** YOU."

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Approximately 57 million people in the US do some sort of work in the gig economy. Some of them drive cars for Uber and Lyft, deliver groceries for Instacart and Doordash, walk dogs for Wag and Rover, clean houses through Task Rabbit and Handy, and manage apartment properties on Airbnb.

The market has grown quickly over the past few years, bringing in as much as $864 billion annually, according to some estimates. And with it, there’s been a lot of talk about the rights of these workers. They’ve been fighting for fair treatment for a while now; since they’re considered contractors, they don’t get benefits like insurance, worker’s comp, or paid vacation. Sociologists, labor experts, and economists have all weighed in on the issue, largely agreeing that gig workers deserve the same fair treatment as regular employees.

On April 29, the United States Labor Department offered its own interpretation on the matter. After a lawyer working for an unnamed cleaning company reached out to clarify how gig workers should be classified, the department responded in a letter that’s since been posted online. In the letter, the Labor Department said it classifies gig workers as contractors, not employees:

“Based on the facts you provide in your letter, it appears that the service providers who use your client’s virtual marketplace are independent contractors. Your client provides a referral service. As such, it does not receive services from service providers, but empowers service providers to provide services to end-market consumers.”

The letter could have huge implications for the future of the gig economy. It essentially renders gig workers exempt from the Fair Labor Standards Act, a law written in 1938 that guarantees overtime pay and a minimum wage to many who work more than 40 hours.

It’s caused plenty of disagreement. On Monday, the National Employment Law Project tweeted that the letter essentially allows gig economy companies to “underpay and overwork” this class of workers.

So what’s the department’s logic? It reasoned that, because the unnamed cleaning company doesn’t pay for professional certification, licensing, or let workers expense products, they should clearly be seen as contractors. It also points out that since workers don’t have set hours or shifts, they should be free to “pursue any and all external opportunities at their leisure,” which means that the company should not be seen as the main party responsible for them.

This type of reasoning is pretty different from how the Labor Department under Barack Obama’s administration viewed the gig economy.

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