Tipped Employees

The Texas employment attorneys at Rob Wiley, P.C. fight for tipped employees who are not being paid the wages that they are owed.  The law regarding how employers pay tipped employees is complicated, and employers are notorious for paying tipped employees incorrectly. It is important for tipped employees to know their employment rights. Contact our employment attorneys in Dallas, Austin, or San Antonio today.

What is the Minimum Wage for Tipped Employees?

The minimum wage for tipped employees in $7.25 per hour. If a tipped employee is paid $2.13 an hour in direct wages, the employee's tips must come to $5.12 per hour or greater in a work week. This difference between $2.13 and the minimum wage is called the “tip credit.”

Using the tip credit to meet the minimum wage requirements is a privilege, not a right. An employer must strictly comply with all regulations regarding the tip credit or the employer loses the tip credit. If an employer loses the tip credit, the employer must go back and pay the $5.12 difference out of the employer’s pocket for all hours worked in the past two or three years. In many cases, the employer must pay a penalty equal to the amount owed. This means that an affected worker would receive twice the tip credit (currently $10.24) for each hour worked in the past two or three years. If an employer uses a tip pool in calculating the tip credit, the employer must strictly follow all tip pool requirements.

Our Employment Attorneys Fight to Ensure Tipped Employees Receive Overtime Pay

Tipped employees are usually paid less than the normal minimum wage (often as low as $2.13 per hour). However, 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.

Employers make frequent mistakes and pay a lesser overtime amount than required by law. Our Texas employment lawyers can determine whether you are paid the correct overtime rate. Contact us today.

Contact Our Employment Lawyers Immediately

Our Dallas, Austin, and San Antonio employment attorney have experience fighting for tipped employees. We aggressively pursue claims for unpaid overtime and minimum wages.  Contact our Texas employment lawyers if you are a tipped employee and believe that you are owed wages.