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Article: Tip credit; Stick with existing policy.(NEWS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- March 31, 1997
CopyrightCOPYRIGHT 1997 Star Tribune Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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You buy a meal in a restaurant. You receive good service. You leave a tip.
That everyday event is at the center of a controversy over how state and federal minimum-wage laws apply to the restaurant industry. The fight is over "tip credit" - that is, over how much of a server's tips should be counted as wages to satisfy the law's minimum-wage requirement.
"None" is how Minnesota answered that question a decade ago, requiring restaurants to pay the minimum wage despite employees' tip income. That's still a good answer - despite a ruling by the Carlson administration to the contrary as the federal wage floor rose from $4.25 to $4.75 last fall.
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