Instead of tips, his restaurant adds a 20% service fee to the bill. The service charge is not an out-of-the-ordinary practice, and is common among some upscale restaurants. Davis said pay for his employees is generally around double the local minimum wage, which hit $17.34 in Oakland on Jan. 1. The federal minimum wage is $7.25, stuck there since 2009; the tipped minimum wage is far lower, at $2.13. Although many states have a minimum wage far above the federal $7.25 per hour, many still have an exceptionally low minimum wage for workers who get tips.

Source: Los Angeles Times February 20, 2026 16:34 UTC