Tipped Off: Recent Developments in Federal Wage Law Affecting Tipped Employees
The federal Fair Labor Standards Act (FLSA) generally requires that employers pay employees at least $7.25 per hour. One of the few exceptions to the rule is “tipped employees” – including waiters, bartenders, and other employees who regularly receive gratuities for performing their jobs. The FLSA allows employers to subsidize the minimum wage paid to the tipped employees with gratuities…