The pay practices have to be illegal. Here's a basic example.
(At my store we all got hourly pay because salon is so slow not even the manager made commission)

Take home pay: 300
Tips from credit cards : 100
Tips already received :-100
Taxes from hourly: -30
Taxes from tips: -20
__________
What this adds up to 250

You would think your take home would be 250 but no. Because you did not make commission they remove your tips from your pay after having the taxes removed from your paycheck.

Amount on paycheck : 150

This way the company doesn't actually have to pay you minimum wage as it is written in your employment documents. But you still pay a higher tax on your tips as if you kept them.


I told my friends and family who came to me at the salon not to tip me if they only had a credit card because the company would be the beneficiary, not me. 2f41837

• Employment
• Payment
• Credit card
• Credit history
• Minimum wage