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Improper Payment for Tipped Employees

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 the attorneys at Habush Habush & Rottier S.C. ® for a free and confidential consultation. Click here to chat with one of our online representatives.