Understanding Tipping Laws As An Employee

Although there are endless amounts of employees who are tipped on a monthly basis, many do not understand tipping laws and how they can protect them. the Fair Labor Standards Act (FLSA) specifically provides a section entitled for employees to be protected if they are tipped more than 30 dollars a month. We here at Maduff & Maduff want you to have a better understanding of tipping laws which include the following:

Tip Pooling

The FLSA states that tip pooling may be permitted among employees who regularly receive tips. On the other hand, tipped employees are prohibited to tip employees who do not regularly receive tips per month.

For instance, a server may tip pool to a food runner or busser with no maximum percentage required. The server is not required to tip the cooks or dishwashers of the facility since they do not regularly receive tips.

Tip Credit

Another way tips may be factored in for regularly tipped employees is tip credit. This is the process where the employer combines the tip amount with the wages the employee made for the time they worked. There are many requirements for an employer’s ability to use tip credit including the following:

– The total amount of the wages the employee earned
– The amount credited against the tips
– Informing the employee of the FLSA’s rules and regulation regarding tip credit
– Informing the employee the tip credit will not overreach the tips received

Tipped Employees And Side Work

In several different business facilities, tipped employees will have to do work that is generally not tipped. Employees in the restaurant business will have to do side work, such as folding napkins, preparing food, and cleaning the facility. Employees are permitted to still be tipped for doing these duties, unless it is over 20 percent of the time they are working.

For more information regarding tipping laws and how to ensure you are protected, contact our highly experienced attorneys at Maduff & Maduff today.