What's the deal with wages for tipped workers? In several states, employers are allowed to pay tipped workers less than the minimum wage, which is sometimes shockingly low . This is known as the "tip credit." The theory is that these employees will supposedly make up the difference in tips. In practice, that benefits business owners far more than it benefits most workers. Eyal Press of the New Yorker recently reported a story about attempts to raise the minimum wage for servers in several places around the United States. But powerful organizations — namely the National Restaurant Association and similar state-level groups — have fiercely opposed this. He dug into how the restaurant industry is fighting tooth and nail to prevent raising the minimum wage for tipped employees.
The real reason why the NRA supports "no tax on tips"

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