Legal Question in Employment Law in California

As with most bands, you are free to negotiate any terms you wish. Bands with more of a following can command a better deal. Bands who are not yet established will even perform for free, for the exposure and so they can sell their own merchandise. If you believe the restaurant is not offering you a fair deal, don't take it. This is a tough business to be in, as you will find out.

But you are not an employee of the restaurant, so they do not have to pay you minimum wages.

Yes, it is legal. The owner of the restaurant is giving your band an opportunity to be seen. You will also be able to make some money. If you want more, ask for more. If the owner wants you that badly, and you can demonstrate that you will bring in customers, then he might give you more. More than likely, the owner can find any number of bands that are willing to work for tips.

As independent contractors (not employees unless the business controls the way you perform your work, etc.) you can accept or deny the offer or negotiate a better one. It is always best to have a written contract if you are performing for pay, tips, etc.