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November 5, 2008    DOL Home > Find It! By Topic > Wages > Tips   

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A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

DOL Web Pages on This Topic

Compliance Assistance: Tips

Tipped Employees Fact Sheet
Provides general information concerning the application of the Fair Labor Standards Act (FLSA) to employees who receive tips.

Definition of Tipped Employee
Any employee working in an occupation in which he or she regularly receives more than $30 a month in tips is considered a tipped employee.

Wage, Hour and Other Workplace Standards: Minimum Wage and Overtime Pay
Excerpt from the Employment Law Guide about FLSA minimum wage, overtime pay, and recordkeeping standards.

Minimum Hourly Cash Wages for Tipped Employees Under Minimum Wage Laws
A listing of wage and tip amounts required to be paid to tipped employees as determined by state law.

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