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The Fair Labor Standards act for tipped employees

| Nov 20, 2020 | Employment Law |

If you are an employee who works for tips, it’s likely that you work directly with customers in an environment such as a bar, restaurant or a vehicle. While many types of workers receive tips from time to time, those who are defined as tipped workers under the Fair Labor Standards Act (FLSA) are defined as those who regularly receive more than $30 in tips each month.

One common question is whether tips received are the property of the employee or their employee. While the pooling of tips is allowed so that all tips can be shared equally among a team of workers, tips received are considered to be the sole property of the employee who was tipped. If you are a tipped employee, it is important that you understand the laws that apply to you and the rights that you have in the workplace. The following is an overview of the rights of tipped employees under the FLSA.

How tip credit works

The current national minimum wage is $7.25. However, employers may not have the duty to pay you this amount if you earn tips. Employees are only entitled to a minimum wage of $2.13 per hour if they are earning tips that equal at least $5.12 an hour. In other words, your total income per hour should never be less than $7.25 per hour.

The information your employer should provide you with

If your employer will use the tip credit, they will need to provide you with certain information. This includes the amount of wage that they will pay you, and how much will be credited against tips. They will also need to notify you that the tip credit will never exceed the amount of tips that you receive.

If you are a tipped employee and you want to understand whether you are being paid enough by your employer, it is important that you take the time to understand the law.