This is a business news story from a week or two ago that didn't receive as much coverage as I thought it would. Ever since the minimum wage legislation was introduced, many restaurants (including some major chains) have avoided complying with it by considering tips to be part of their employees' earnings. Unions have been arguing against this, saying that tips are supposed to be a gesture from the customer over and above the minimum wage. It looks like the unions have won - the government has announced that from October restaurants must pay the minimum wage regardless of any additional tips that employees make. I imagine this will significantly impact the profit of quite a few restaurants, and perhaps hospitality businesses will find a new way of escaping the rules, but I think most people will agree that in principle it's fair enough.
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May 18, 2009
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