Minimum Wage for Tipped Employee


The federal minimum wage, which is set by The Fair Labor Standard Act (FLSA), is $5.15 per hour for covered, nonexempt employees.  An employer of a tipped employee is only required to pay $2.13 an hour in direct wages, only if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, then the employer must make up the difference.

Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions which provides the greater benefits.





PEO7.com 23945 Calabasas Rd. Suite 106, Calabasas, CA 91302 818-222-4572 cs@peo7.com
SiteMap  | Home  | Exploring the Possibilities  | What is Employee Leasing  | Why use a Peo  | Free Advice  | Benefits to Employees
Responsibilities of PEO  | Benefit Package  | HR Management  | Pre-Employment Screening  | The Issue of Control
Future of PEO |  Request For Proposal (RFP)  | Contact Us  | Peo Resources |  Terms of Service | FAQ