Federal and state laws allow employers to pay tipped employees a lower minimum wage than non-tipped employees, $2.33 per hour. However, many employers incorrectly pay tipped employees. If you are a tipped employee, consider the following common mistakes:
- Failing to ensure that tipped employees receive at least the minimum wage of $7.25/hour between their tipped minimum wage and the tips they receive;
- Tip pools: if managers, cooks, or other non-tipped workers pull from the tip pool, the tip pool is illegal;
- Non-tipped work, such as prep work, cleaning, and stocking, cannot be paid at the tipped minimum wage. You must be paid at least $7.25/hour for this work.
If you are a tipped employee and are paid improperly, you may have a claim for unpaid wages and overtime. Contact attorneys Jason Knutson or Breanne Snapp for a free and confidential consultation. Click here to chat with one of our online representatives.