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From The Stranger:

It’s Not a Tip Credit, It’s a Tip Penalty

As you may have heard, business interests in Seattle want to include a tip penalty in the city’s minimum-wage proposal, although they like to call it a “tip credit.” A tip penalty would mean that employers get to deduct any tips an employee receives from their hourly wage obligations. While this may sound fine in principle, in practice a tip penalty is an invitation for exploitation by unscrupulous employers and reintroduces the kind of wage uncertainty and inequality the minimum wage is meant to prevent.