Minimum Wage, Tipped Employees, and the Tip Credit

Waitress carrying three plates with meat dish

Under the Fair Labor Standards Act (FLSA) and in most states, employers are allowed to pay tipped employees an hourly wage rate that is less that the standard minimum wage. This reduced wage rate is frequently referred to as the “tipped minimum wage.” Unfortunately, this label can be a little deceptive. The reality is that … Read more

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