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 EmployeesThe 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.