Tipped Workers Left Out of the U.S. Wage Debate

The video discusses the implications of tipping in the service industry, highlighting a Washington Post article by Catherine Rempel. It explains how federal law allows employers to pay less than minimum wage by claiming credit for tips, placing the burden on customers. The discussion includes insights from Alan Krueger of Princeton, who criticizes the practice as a scam. The video explores the historical context and the influence of the restaurant lobby, emphasizing the economic impact on service workers.

What does the federal law allow employers to do with tips?

• Use them to pay workers less than minimum wage

• Keep them as company profit

• Distribute them equally among all employees

• Donate them to charity

Who is expected to make up the difference in wages due to tipping policies?

• The government

• The restaurant owners

• The employees themselves

• The customers

What is the main focus of the article mentioned in the video?

• The benefits of tipping for employees

• The microeconomics of wage policies

• The history of the restaurant industry

• The role of technology in service industries

What does the video suggest about the treatment of service industry workers?

• They are treated the same as other workers

• They receive higher wages than other industries

• They are treated differently and often unfairly

• They have more job security than others

What does the video imply about the power of the restaurant lobby?

• It has little influence on wage policies

• It strongly influences wage policies

• It supports higher wages for workers

• It is focused on improving customer service