While tipping is not legally required, many employees rely on it to boost their hourly salaries. In the United States, the federal minimum wage for employees who receive tips is $2.13 per hour while those who do not receive tips earn $7.25. In New York City, tipped employees are guaranteed a minimum hourly wage of $10.65, but they must earn at least $16 with tips. California provides a higher minimum wage of $16 per hour for tipped employees, which is the same as the majority of the state's workforce. However, fast-food employees in major California franchises must be paid at least $20 per hour.
Vallari Vaidya is a journalist who writes for Market Realist. Her articles cover a range of topics, including celebrity net worth, entertainment industry news, viral videos, and business success stories. With a keen interest in pop culture and finance, Vallari provides readers with engaging and informative articles on the latest trends and developments.