According to the Washington Post, after a change in tax rules last year, the auto-gratuity added to the bill of large parties at restaurants is on its way out.
1. What is the new rule that the Internal Revenue Service imposed on restaurants that led to this change?
2. How does this change lead to greater costs to the employer and less income to the servers?
3. Why have some smaller restaurants kept the auto-gratuity, while the bigger chains have not?
4. What is the tipped minimum wage for servers nationally?
5. What have some of the larger restaurants proposed for changing how server wages work?
DePillis, L. (2015). Restaurants have changed how tips work, and waiters are furious. The Washington Post, Dec. 16 (Retrievable online at https://www.washingtonpost.com/news/wonk/wp/2015/12/16/restaurants-have-changed-how-tips-work-and-waiters-are-furious/)