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What a tipped employee should know

Posted on December 26, 2014 2:47 pm under Overtime Law and Minimum Wage Violations

Employees in the adult entertainment industry can become subject to many different wage and hour violations, such as being misclassified as an independent contractor, not being eligible for overtime payment, and receiving less than the minimum wage required. In some instances, employers may deliberately or unintentionally engage in unlawful tip crediting, which negatively affects pay.

Tip crediting happens when an employer credits employees’ tips against his or her minimum wage obligations. Any employer who use tip credit must supply their employees with this information:

  • Amount of cash wage the employer is paying
  • The amount that the employer claims as a tip credit
  • Notification that the tip credit will only be applicable to tipped employees who have been informed about the Fair Labor Standards Act’s (FLSA) tip credit rules
  • Notification that the actual tip credit cannot exceed the amount of the actual tips received

If you work in the adult entertainment industry and believe that your employer has not been fair in providing you the payment that is required by law, a lawyer at Habush Habush & Rottier S.C. ® might be able to help you. Call our Madison office at (414) 271-0900 to learn more about the possibility of taking legal action.