by Barry Dennis

Created on: November 22, 2009   Last Updated: November 23, 2009

Here's the thing about Minimum Wage

Just a few years ago, service industry workers, primarily food service, did earn minimum wage, PLUS TIPS.

Then the Restaurant industry and lobbyist's pushed for, and succeeded with, legislation that allowed restaurant operators to set a much lower minimum wage, as low as $2.13 an hour, by averaging tips collected into the totals, to determine how food service personnel were paid. In addition, many places require "pooling" of tips to provide additional compensation to busboys, food preparation assistants and cooks, hostesses, almost the entire staff.

As far as the food service and other industries are concerned, minimum wages are like taxes and other costs; they are passed on to consumers of their products.

Restaurant industry operators worry that Federal minimum wage standards increase their costs to the point where raising prices reduces the appetite of the consumer for an eating out experience.

And, economic circumstances often dictate that when times are tough, consumers eat out less, or eat at less expensive places and less often,changing the business mix and profitability of some chains and locations.

Now, we find some restaurants IMPOSING gratuity charges of 15%, 18% even more on checks, and diners don't have a choice. Food service workers that get tips are paid only $2.13 an hour, plus tips. And, the total must add up to the Minimum Wage or the owner must make up the difference.

Restaurants are doing this to create higher wages for service staff without having to raise prices and reduce traffic and sales.

But, that begs the question of what is fair, what is right, and what is necessary.

In a free marketplace, business owners should be able to set wage rates at levels necessary to obtain the quality of worker needed to fulfill requirements of the job.

Service industry employees, which in this definition includes hotel janitorial staff-and those represented by unions have different wage and working condition agreements-medical industry employees, nursing home employees and many others.

In addition, Department of Labor and The Fair Labor Standards Act (FLSA) exempts millions of workers in many categories from FLSA provisions.

We can think of lots of service-related occupations that give cause for a concern that workers, usually those lesser educated, lower income, poorer; are holders of those jobs.

Consider the farm workers in many, if not most areas, that work the farms that supply the U.S. with fresh produce and fruits.

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