A tipped employee is defined as any worker who typically receives more than $30 a month in tips as part of their job. This classification is important because it affects how their wages are calculated and what labor laws apply to them.
The term "tipped employee" is commonly used in employment law, particularly in discussions about wage and hour regulations. It is relevant in various legal contexts, including labor law and wage disputes. Understanding this classification can help both employers and employees navigate issues related to minimum wage, overtime pay, and tax obligations. Users can utilize resources like US Legal Forms to find templates and forms that pertain to employment agreements and wage disputes.
Here are a couple of examples of abatement:
For instance, a waiter at a restaurant who earns $200 in tips each month would be classified as a tipped employee. Conversely, a retail worker who does not receive tips would not fall under this classification.
The Fair Labor Standards Act (FLSA) governs the classification of tipped employees and outlines the minimum wage requirements for them. It specifies that employers can pay tipped employees a lower minimum wage, provided that tips make up the difference to meet the standard minimum wage.
| State | Minimum Wage for Tipped Employees |
|---|---|
| California | $15.50 |
| New York | $15.00 |
| Texas | $2.13 (with tips making up the difference) |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Tipped Employee | An employee who regularly receives tips as part of their compensation. |
| Non-Tipped Employee | An employee who does not receive tips and is subject to standard minimum wage laws. |
If you are a tipped employee, it is essential to understand your rights regarding minimum wage and tips. Keep accurate records of your tips and hours worked. If you believe you are not being compensated fairly, consider seeking legal advice or using US Legal Forms to find relevant templates for wage claims.
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You can report the issue to the Department of Labor or seek legal advice.