Dallas Tipped Employees Lawyer
What is the Tipped Employee Minimum Wage? The Fair Labor Standards Act (FLSA) sets the federal minimum wage. Currently, the minimum wage is $7.25 per hour. However, the FLSA allows employers to take a "tip credit" and pay tipped employees as low as $2.13 per hour. Paying employee $2.13 an hour is a not a right, and employers must follow strict guidelines or they will loose this ability.
When an employer fails to follow all the guidelines, the employer then owes each employee the difference between $2.13 and $7.25 for every hour worked for up to the last three years. Then the employer may be required to pay double that amount as a penalty. Many tipped employees are surprised at how first this amount adds up.
Overtime for Tipped Employees The overtime calculation for tipped employees is not the same as it is with non-tipped employees. This calculation can be complicated because it varies with the amount of the tip credit taken by the employer. Basically, tipped employees should be paid at least $5.76 per hour for every hour worked over forty hours a week. If not, the employer has lost the right to take the tip credit.
It does not matter whether you work in two different roles. If you work more than forty hours in a work week, then you are owed overtime. For example, if you work 30 as a waiter and 15 hours as a hostess, you are owed 5 hours of overtime pay.
Laws for tipped employees are complicated. If you are a tipped employee and would like to learn more about your rights, contact our Dallas tipped employee attorneys today.