Part 3/6:
Consider a scenario where a server works across multiple shifts. On one particular shift, they may end up earning $0 in tips, while during another shift, they could earn a higher amount, say $30. When averaged, this could translate to $15 per shift, exceeding the mandated minimum wage. Consequently, if the server’s overall earnings average out above minimum wage when tips are included, the employer is not required to supplement their hourly wage during shifts with lower earnings.
Hence, the variation in tips from shift to shift can mean that while the hourly rate seems low, the overall compensation can be adequate, or even lucrative, depending on customer generosity.