What is total compensation and why should we implement it? Total compensation is a policy that includes taxable tips, commissions and wages in calculating a tipped employee’s taxable income. It’s a win-win – it allows employers to allocate limited labor dollars to non-tipped employees without decreasing the earnings of their servers and bartenders and improves income equality between highly compensated front-of-house staff and non-tipped heart-of-house staff, who are 70% Latino.
“The California Food Service Workforce” prepared by Decisions Demographics for the California Restaurant Association. (November 2013)
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