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I can tell you that when I worked briefly for tips in my mid-30s, they were functionally tax exempt.

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That said, I'm somewhat sympathetic to the owners here. You're getting essays because the alternative is having long conversations with diners, over and over, or -- worse -- forcing wait staff to explain their compensation structure to diners, over and over. Maybe this is a transitional period and in five years more folks will understand what they're getting without the fuss.

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