What is the minimum wage for workers who
receive tips?
The Fair Labor Standards Act (FLSA) requires payment of at least the
federal minimum wage to covered, nonexempt
employees. An employer of a tipped employee is only required to pay $2.13 an hour in
direct wages if that amount plus the tips received equals at least the federal minimum
wage, the employee retains all tips and the employee customarily and regularly receives
more than $30 a month in tips. If an employee's tips combined with the employer's direct
wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer
must make up the difference.
Some states have minimum
wage laws specific to tipped employees. When an employee is subject to both the federal
and state wage laws, the employee is entitled to the provisions which provides
the greater benefits.
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