Protecting Wages for Tipped Employees
The Fair Labor Standards Act (“FLSA”), which governs overtime compensation and minimum wages, provides special rules for paying employees who receive tips from customers. The FLSA obligates all employers to pay employees a minimum wage of $7.25 per hour. Under limited circumstances, however, an employer may pay tipped employees $2.13 per hour, and apply up to $5.12 per hour from the tips the employees receive. Under the FLSA, “tipped...