Banker Leaves 1% Tip On $133 Lunch Bill In Defiance of 'The 99%' [UPDATED]
Saturday, February 25, 2012
The Tip Credit (70% today)
A TIP CREDIT is the total amount of tips an employer may count towards the total applicable minimum wage. The federal tip credit is $5.12. per hr. A employer is allowed to pay servers $2.13 because they are claiming servers will make at least $5.12 an hour in tips.THIS IS WHY THEY ARE NOT REQUIRED TO PAY YOU THE FULL MINIMUM WAGE . $2.13 + tips received (Tip credit) must = the full applicable minimum wage.
*Other states and cities have higher or lower tip credits. In Santa Fe, NM, for Example, where the full minimum wage is$9.85 employers take a higher tip credit. They are still allowed to pay servers $2.13 per hr but those servers must make $7.72 per hr in tips. If they don’t, the employer must reimburse them. Some states such as Virginia and New Jersey, allow employers under certain circumstances to take a full 100% tip credit. This means servers in these states may receive no hourly cash wage at all. States that prohibit the tip credit include: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington.Servers who work in these states receive the same minimum wage as all other workers.
AN EMPLOYER IS NOT ALLOWED TO TAKE THE TIP CREDIT UNDER THE FOLLOWING CONDITIONS:
TIP POOLING THAT INCLUDES THE BACK OF THE HOUSE EMPLOYEES
These workers are not directly involved in the chain of service. They do not buss or run food to your tables. According to the FLSA, Employers lose their right to the tip credit if they require wait staff to subsidize the wages of cooks, janitors, dishwashers, managers. If your employer requires you to tip out the back of the house, they MUST PAY you the full applicable minimum wage per hr.
WHEN THERE ARE NO OPPORTUNTIES TO EARN TIPS.
Required attendance for staff meetings, training period or any time you must work but are not receiving tips. For example, if your employer requires you to come in on your day off for a staff meeting or to help set up Christmas decorations, they are required to pay you the full applicable minimum wage. Side work can only account for 20% of your shift. Excessive amount of time performing side work forfeits the employers right to the tip credit.
Read the Article at HuffingtonPost
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