A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employees tips combined with the employers direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.
Provides general information concerning the application of the Fair Labor Standards Act (FLSA) to employees who receive tips.
Definition of Tipped
Any employee working in an occupation in which he or she regularly receives more than $30 a month in tips is considered a tipped employee.
Wage, Hour and Other
Workplace Standards: Minimum Wage and Overtime Pay
Excerpt from the Employment Law Guide about FLSA minimum wage, overtime pay, and recordkeeping standards.
Minimum Hourly Cash
Wages for Tipped Employees Under Minimum Wage Laws
A listing of wage and tip amounts required to be paid to tipped employees as determined by state law.