Several employees in the service industry, such as those working in the adult entertainment sector, are considered ‘tipped employees.’ The Fair Labor Standards Act (FLSA) defines tipped employees as those who customarily and regularly receive tips, or those who receive tips greater than occasional but less than constant.
Although tips basically belong to employees, some states, including Wisconsin, allow the employers to have tip credits. Tip crediting occurs when an employer counts a worker’s tip towards its minimum wage obligation. For employees receiving tips as part of their wage, here are some reminders to ensure that no wage violations are being committed:
Tipped workers in the adult entertainment sector are most vulnerable to employer exploitation, including wage violations. If any of these have not been satisfied, a lawyer at Habush Habush & Rottier S.C. ® is willing to look into your situation to see if any wage violation has been committed. Call our Wisconsin office at (414) 271-0900 to know more about your situation.