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Employers have to make up the difference if tipped employees don't make enough tips to meet the minimum wage. However, minimum wage is often not a living wage.
by mikeash 8y ago
Employers have to make up the difference if tipped employees don't make enough tips to meet the minimum wage. However, minimum wage is often not a living wage.
- paulie_a 8y agoI would guess there are dozens of cases of that actually happening a year. And then the person got fired.
- awalton 8y ago> Employers have to make up the difference if tipped employees don't make enough tips to meet the minimum wage This is not true in all states. Kentucky has no provision for this, e.g. (I worked in restaurants through college, so I have hands on experience here.)
- mikeash 8y agoIt’s federal law: https://www.dol.gov/whd/regs/compliance/whdfs15.htm https://www.dol.gov/whd/regs/compliance/whdfs15.htm Maybe it was different when you were in college?
- dragonwriter 8y agoEmployers use tips as a performance metric, and particularly use needing to top-up an employee's tips as a firing cue, so in practice in places where cash tips are possible employees will often, at a minimum, report sufficient cash tips to avoid top-up even if they don't recieve them.