Sunday, January 12, 2014

Record of a different labor dispute

http://www.nytimes.com/2014/01/09/nyregion/after-winning-a-raise-175-casino-workers-in-queens-lose-their-jobs.html?src=rechp

These 175 casino workers were earning $5 an hour plus tips. In the casino's buffet restaurant. (Imagine that, the bountiful tips in a buffet restaurant!). In New York City (Queens), where the minimum wage is $9.75 per hour. After one year of dispute, the case went to arbitration, and the labor arbitrator raised wages to $12 per hour. The casino did agree to the raise - and then fired the workers a few months later.

For the record, none of the (Malaysian) owners of the casino were ever arrested or strip-searched.
Posted by Arun at 9:42 AM

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dwc's avatar

dwc · 585 weeks ago

That's how many salesmen work. For instance, sales people at Frys electronics make $0 per hour plus commission. However, if they don't make commission as much as the minimum wage, the company pays the differential, which will be paid back by the employee. And this is called 'draw'

This practice is legal, tho.
2 replies · active 585 weeks ago
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Arun's avatar

Arun · 585 weeks ago

I know it is legal to hire at (wage + tips) where the wage is less than the minimum wage. However, tips should not be virtually non-existent.
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Arun · 585 weeks ago

"However, if they don't make commission as much as the minimum wage, the company pays the differential, which will be paid back by the employee" when the employee makes commissions that exceeds the minimum wage. But the employee is guaranteed the minimum wage.

e.g, see http://www.cata.info/avoid_minimum_wage_trap_when...

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