Our unpaid wage attorneys represent tipped employees who have not been paid the correct wages. The law regarding tipped employees is complex and employers often fail to pay the correct wages. All tipped employees should know their rights. Contact our employment lawyers if you are a tipped employee and not being pay correctly.
Although $7.25 is the minimum wage for tipped employees, an employer may take a tip credit of $5.12 an hour. Thus, an employer may pay tipped employees as low as $2.13 an hour ($7.25 – $5.12 = $2.13) for every hour worked up to forty hours a week. This is often referred to as the “tip credit.”
The use of the tip credit is a privilege, not a right of the employer. In fact, an employer must meet all guidelines regarding the tip credit, or the employer owes the employee the full minimum wage all the way back to the date the violation occurred. In fact, employers must often pay employees back wages for up to three years if the violation is willful.
Employers must pay tipped employees overtime as required by law. This overtime calculation is often different than it is for other hourly employees, and it is not as simple as paying time and a half. Normally, a tipped employee must be paid at least $5.76 per hour of overtime.
Employers frequently make mistakes when calculating the overtime amount. Our employment lawyers can determine whether you are paid the correct overtime rate. Contact us today.
