Tipped Employees and the FLSA
If you are a tipped employee, it is imperative that you know how minimum wage regulations apply to your employment so that you can assure that you are being fairly compensated for your hard work. There are regulations in place to assure that you receive at least the minimum hourly wage between your direct wages and your tips.
Do not allow your employer to take advantage of your hard work in a tip-based situation. You are owed both direct wages and tips, so do not settle for less than the minimum wage in a tip-based job. If you feel that you being defrauded by improper payment, call the wage lawyers of Tycko & Zavareei, LLP at 202-973-0900 today.
Facts for Tipped Employees
The following information is essential for a tipped employee to know about fair pay procedures.
- A tipped employee is one who regularly receives more than $30 a month in tips.
- An employer must pay no less than $2.13 in direct wages in a tipped wage employment.
- An employer must inform the employee that they are using the tip wage credit to calculate their pay.
- The total of direct pay and tipped pay must at least equal minimum hourly wage.
- If the total payment does not equal minimum wage, the employer is responsible for making up the difference.
- Employees retain all tips except those subject to a valid tip pooling arrangement.
- A service charge mandated by an employer does not count towards a tipped employee’s tips. An employee should be paid full minimum wage if they do not receive a tip in a compulsory service charge situation.
- The amount due to an employee based on credit card tips must be paid on the regular pay day and may not be withheld by the employer while waiting for reimbursement from the credit card company.
- In a situation where a tipped employee spends more than 20% of their time working in a non-tipped situation, the employer is responsible for paying at least full minimum wage for that time.
Contact Us
If you believe that you are not being fully compensated for your tipped employment, you need a lawyer to fight for your hard work. Please contact the wage lawyers of Tycko & Zavareei, LLP at 202-973-0900 today for more information.
