Tipped employees are not paid like most other employees. Most employers must pay all of your wages directly from the business. However, employers (bosses) that employ tipped employees have the right to use a tip credit so they do not have to pay you the full minimum wage from the company. The tip credit allows your employer (boss) to count the tips you are paid from your customers to satisfy part of their minimum wage obligation. This means that your boss only has to pay you part of the minimum wage while your customer pays you the other part. The following is a brief explanation to help you understand the tip credit.
The main concepts you need to understand are: (1) Who is legally a tipped employee, (2) What is the minimum wage, (3) What is the tip credit set by law, and (4) your rights as a tipped employee. Continue reading
You have a right to receive the minimum wage for each hour worked and overtime for any hours worked in excess of 40 hours in a workweek. Tipped employees, such as waiters/ servers routinely get short changed because their employer (boss) takes advantage of the tip credit and then violates many of the rules regarding how a tipped employee is to be properly paid. Here is what you need to know as a tipped employee. Continue reading
It seems restaurant employees such as servers, are some of the most mistreated and shortchanged employees working today. Employers seem to try and take as much out of the tipped employee’s pay as possible. Here are the facts to help you know about uniform regulations and what the boss can and cannot deduct from you pay. Continue reading
A common practice in the restaurant industry is for tip earning employees to combine their tips for the day and then divide the earned tips amongst each other. This practice is called “tip pooling”. Another practice is where employees who earn tips divide the tip amongst the employees who helped to serve a specific customer. This is known as “tip sharing”. Many employers violate the laws that govern how tip pools and tip shares are to be managed. Here is what you need to know. Continue reading