A piece in the Virginian-Pilot reports that local Papa John's franchises in southeastern Virginia changed their pay structure at the beginning of this month.
... Previously, drivers got at least the full minimum wage of $5.85, plus a small delivery stipend and tips. Now, Papa John's is taking advantage of federal law that says because the drivers can make tips, they can be a paid a lower hourly rate when they're on the road making deliveries and a higher rate while working in the shop. Other pizza places use comparable systems.
But the rub is that most people tip for s*** when it comes to pizza delivery. So with the cost of gas through the roof, plus insurance and car maintenance, some drivers aren't even breaking even on the cost of delivery. So just a reminder, homeslices, be sure to tip the pizza guy or gal. Here are some tips on tipping: tipthepizzaguy.com.
Well as a former pizza man I can say that the hourly pay was a whooping 2 bucks an hour. Granted that was in the 90's but still well below minimum wage.
The problem I have with that theory is that you are perpetuating the system. If pizza delivery guys aren't breaking even, they aren't going to do the job. No matter how much someone needs a job, they aren't going to pay to go into work. Employers should appropriately compensate their employees, and if they have no choice they will do just that. We are not actually helping by keeping them going at a marginal subsidence existence.
The federal minimum wage goes up again tomorrow. It doesn't seem like a coincidence that Papa's pay structure has been altered. I have friends that don't tip food delivery drivers, using the excuse that a delivery charge was applied to the bill. I don't get much food delivered these days, but I do believe in generously tipping the drivers.
I always handled it as follows, because you just never know...
20% for usual, solo delivery (usually around $2).
30% if it's nasty weather or someone I know (around $3 - $3.50).
10% if the place calls me an hour after the order to tell me they don't know where the driver is at all.
NADA if the driver shows up two hours later (30 minutes after the place closes, mind you) with the entirely wrong order and an air of "who cares?"
The last one is usually followed up with a talk to the manager when they open the next day. ;)
So I'm still trying to understand minimum wage laws. As I have been told, a waiter/delivery person can be paid an hourly wage below minimum wage, given that at the end of a pay period the sum of the wage and tips came out to more than minimum wage. If it didn't, then the owner of the business was required to make up for the gap.
Anyone actually in the industry want to clarify this for me?
You are correct. First, if a state's minimum wage is higher than the feds, the state wins. Second, there are different standards for tipped employees. In NJ for example, the minimum wage is $7.15/hour (higher than the federal requirement of $6.55/hour). However, the minimum tipped wage is $2.13/hour (which matches the federal standards). The feds require that total wages paid to tipped employees + total claimed tips/tipped hours worked is greater than or equal to state minimum wage.
These calculations of hourly earnings + claimed tips vs. minimum wage are usually done on a quarterly basis and based on totals for all employees. Therefore it is possible for some employees to make below the minimum wage and others to make over it, but the IRS doesn't require calculations on an employee by employee basis.
However, I can almost guarantee that per hour, these drivers are making above the minimum wage. Even if they made $2.13/hour base, they would only need to make $4.42/hour in tips. This is probably 2 deliveries per hour. Also - if they are not reimbursed directly by their employers for mileage (which currently runs at $0.505 per mile for 2008, sure to rise for next year), they can be claiming this on their own return as a legitimate business expense. If I were their employer I would be taking the mileage expense on my own p&l just for the writeoff, and consider it a cost of doing business.
For me, tipping the pizza driver or the server at a restaurant doesn't come down to subsidizing their earnings. If they made minimum wage, I'd still tip.
As a former pizza delivery person, I can tell you that people did not tip well, if at all. And truthfully, the job sucks -- you are using your own car, and you are usually treated poorly by your boss, and about half the time by the people you are providing the service to. Not to mention, it is not the safest job in the world -- you have to trust that the person you are delivering to is not going to rob you or harm you in some way, let alone sexually harass you (happened to me MANY times). Now you can't even make minimum wage?
When people are handling my food, I ALWAYS tip well.
interesting. We don't get pizza delivered very often as it's fresher to pick it up (and the place is usually close by), but when we do I'm going to ask from now on if the drivers make at least min. wage.
I personally would have to say that Papa Johns will most likely stop delivering, because there is no way people will deliver for them. First of all Their paycheck would be very small, because they have to claim their tips. Second the drivers would not make enough money to pay for the use of their vehicles. I personally never liked Papa Johns anyway. If they have to be that greedy then I really do hope they go under, the sooner the better. this way they wouldn't be able to take advantage there their employees. Another point is they are delivery drivers not waiters. them getting tipped has nothing to do with Papa Johns.
If you are a Papa Johns customer then try to always tip the delivery driver in cash so that way they won't have to report them and papa johns will have to pay them minimum wage.
Another thing is delivering pizza is one fo the most dangerous in the U.S. I'm sure Papa Johns isn't hurting that bad for money and if they are then they need to get out of the pizza business.
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13 Comments:
Well as a former pizza man I can say that the hourly pay was a whooping 2 bucks an hour. Granted that was in the 90's but still well below minimum wage.
jamesl8n at 6:22PM on 07/23/08
The problem I have with that theory is that you are perpetuating the system. If pizza delivery guys aren't breaking even, they aren't going to do the job. No matter how much someone needs a job, they aren't going to pay to go into work. Employers should appropriately compensate their employees, and if they have no choice they will do just that. We are not actually helping by keeping them going at a marginal subsidence existence.
sarahdlr at 6:43PM on 07/23/08
The federal minimum wage goes up again tomorrow. It doesn't seem like a coincidence that Papa's pay structure has been altered. I have friends that don't tip food delivery drivers, using the excuse that a delivery charge was applied to the bill. I don't get much food delivered these days, but I do believe in generously tipping the drivers.
holdthemayo at 6:45PM on 07/23/08
I always handled it as follows, because you just never know...
20% for usual, solo delivery (usually around $2).
30% if it's nasty weather or someone I know (around $3 - $3.50).
10% if the place calls me an hour after the order to tell me they don't know where the driver is at all.
NADA if the driver shows up two hours later (30 minutes after the place closes, mind you) with the entirely wrong order and an air of "who cares?"
The last one is usually followed up with a talk to the manager when they open the next day. ;)
First Chair at 8:36PM on 07/23/08
So I'm still trying to understand minimum wage laws. As I have been told, a waiter/delivery person can be paid an hourly wage below minimum wage, given that at the end of a pay period the sum of the wage and tips came out to more than minimum wage. If it didn't, then the owner of the business was required to make up for the gap.
Anyone actually in the industry want to clarify this for me?
variaas at 10:05PM on 07/23/08
You are correct. First, if a state's minimum wage is higher than the feds, the state wins. Second, there are different standards for tipped employees. In NJ for example, the minimum wage is $7.15/hour (higher than the federal requirement of $6.55/hour). However, the minimum tipped wage is $2.13/hour (which matches the federal standards). The feds require that total wages paid to tipped employees + total claimed tips/tipped hours worked is greater than or equal to state minimum wage.
These calculations of hourly earnings + claimed tips vs. minimum wage are usually done on a quarterly basis and based on totals for all employees. Therefore it is possible for some employees to make below the minimum wage and others to make over it, but the IRS doesn't require calculations on an employee by employee basis.
However, I can almost guarantee that per hour, these drivers are making above the minimum wage. Even if they made $2.13/hour base, they would only need to make $4.42/hour in tips. This is probably 2 deliveries per hour. Also - if they are not reimbursed directly by their employers for mileage (which currently runs at $0.505 per mile for 2008, sure to rise for next year), they can be claiming this on their own return as a legitimate business expense. If I were their employer I would be taking the mileage expense on my own p&l just for the writeoff, and consider it a cost of doing business.
marianne215 at 11:53PM on 07/23/08
For me, tipping the pizza driver or the server at a restaurant doesn't come down to subsidizing their earnings. If they made minimum wage, I'd still tip.
holdthemayo at 8:43AM on 07/24/08
As a former pizza delivery person, I can tell you that people did not tip well, if at all. And truthfully, the job sucks -- you are using your own car, and you are usually treated poorly by your boss, and about half the time by the people you are providing the service to. Not to mention, it is not the safest job in the world -- you have to trust that the person you are delivering to is not going to rob you or harm you in some way, let alone sexually harass you (happened to me MANY times). Now you can't even make minimum wage?
When people are handling my food, I ALWAYS tip well.
flootsmith at 12:38PM on 07/24/08
tipthepizzaguy.com needs to update its website, which states that gas is $3 per gallon.
bbahnsen at 12:38PM on 07/24/08
interesting. We don't get pizza delivered very often as it's fresher to pick it up (and the place is usually close by), but when we do I'm going to ask from now on if the drivers make at least min. wage.
rockandroller at 3:23PM on 07/24/08
Here is another site I found that is more up to date. www.tiptheman.com it gives the customer all the info they need to know.
cbart_1 at 11:33AM on 07/30/08
I personally would have to say that Papa Johns will most likely stop delivering, because there is no way people will deliver for them. First of all Their paycheck would be very small, because they have to claim their tips. Second the drivers would not make enough money to pay for the use of their vehicles. I personally never liked Papa Johns anyway. If they have to be that greedy then I really do hope they go under, the sooner the better. this way they wouldn't be able to take advantage there their employees. Another point is they are delivery drivers not waiters. them getting tipped has nothing to do with Papa Johns.
If you are a Papa Johns customer then try to always tip the delivery driver in cash so that way they won't have to report them and papa johns will have to pay them minimum wage.
cbart_1 at 11:52AM on 07/30/08
Another thing is delivering pizza is one fo the most dangerous in the U.S. I'm sure Papa Johns isn't hurting that bad for money and if they are then they need to get out of the pizza business.
cbart_1 at 11:59AM on 07/30/08