Tipped Wages in the United States

Get Paid Fairly with USA Employment Lawyers

At USA Employment Lawyers - Jordan Richards, PLLC, we understand that navigating the complexities of employment laws, especially concerning tipped wages, can be overwhelming. That's why our dedicated team is here to guide you every step of the way. Choosing the right legal representation is crucial to ensuring your rights are protected and that you receive the compensation you deserve. 

Call us at (800) 483-0998 for a free and confidential case evaluation.

Understanding Your Rights as a Tipped Employee

In some states, the minimum wage is different for tipped employees. While state laws may vary, the Fair Labor Standards Act (FLSA) requires tipped employees to make more than $30 per month in tips and a combined cash and tip minimum wage rate of $7.25 per hour. Employees who receive tips can be paid an hourly wage of $2.13 in cash, provided they earn at least $5.12 per hour in tips. If an employee receives fewer tips, the employer must pay the difference, but if the employee receives more tips, the money is theirs to keep. ($5.12 is the maximum tip credit against minimum wage, and employers must always pay an hourly wage of at least $2.13).

All too often, employers fail to pay tipped employees the minimum required wage, steal tips in excess of the maximum “tip credit,” or otherwise use tipped wages to unlawfully reduce employee pay.

If you work as a tipped employee, and your employer has not paid you fairly, discuss your situation with USA Employment Lawyers. 

As a tipped employee, it's crucial to understand your rights and the protections available under federal and state laws. Many workers in industries such as hospitality and service rely heavily on tips, and understanding the nuances of these laws can empower you to advocate for fair treatment and compensation.

Here are some key rights you should know:

• Right to a Fair Wage: Ensure that your total earnings, including tips, meet or exceed the minimum wage requirements set by law.
• Protection from Tip Theft: Employers cannot take your tips or require you to share them with non-tipped employees, unless it's part of a legally established tip pool.
• Right to Report Violations: If you believe your rights have been violated, you have the right to report your employer without fear of retaliation.
• Access to Records: You have the right to access your pay records and understand how your wages are calculated.

At USA Employment Lawyers - Jordan Richards, PLLC, we are dedicated to helping tipped employees navigate these complexities. Our experienced team can provide you with the guidance you need to ensure your rights are protected and that you're compensated fairly for your hard work.

Florida Minimum Wage Increase - Effective September 30, 2023

As of September 30, 2023, Florida's minimum wage will be $12.00 per hour, which is more than the federal minimum wage requirement ($7.25 per hour). Florida permits employers to apply a tip credit of $3.02 per hour. Tip credits let employers include tips as part of wage calculation so long as the employer provides tipped employees with the required notice. Employers are also NOT allowed to require tipped employees to share any portion of their tips with a manager or supervisor. In accordance with these regulations, restaurant owners in Florida are obligated to provide tipped employees with a minimum hourly wage of at least $8.98.
Each year in Florida there will be incremental increases until Florida’s minimum wage reaches $15.00 per hour in 2026. Anticipating these changes, employees working in restaurants should prepare for a tipped minimum wage of $11.98 per hour at that time.

Have questions about the new law for tipped employees or wages for tipped employees in general? Do not hesitate to reach out to our qualified Fort Lauderdale tipped wages lawyer at USA Employment Lawyers.

Laws Differ by State

Some states, like California and Alaska, require employers to pay tipped employees a full minimum wage before tips. Others require a higher minimum cash wage than the FSLA, and others still do not have special rules for tipped wages.

If a state does not have specific laws for tipped employees, the FSLA applies. When state law and federal law differ, the employer must operate under the law that is most favorable to the employee.

For example, the minimum cash wage for tipped employees whose employer is taking a tip credit in Florida is currently $7.98, so tipped employees in Florida must make a cash wage of at least $7.98 – even though the FSLA allows a cash wage of $2.13.

Many laws also have specific rules for when tipped wages can and cannot apply. In Hawaii, for instance, a tip credit is only permissible when an employee makes at least $7.00 more than the applicable minimum wage, and in Florida, tipped wages only apply to hours an employee spends working for tips.

To make sure you are being paid fairly, get familiar with the tipped wage laws in your state.

If you are making less than minimum wage (in your state or under the FLSA, whichever is higher), consult our tipped wage attorneys at USA Employment Lawyers.

What About Tip Pooling and Service Charges?

The FLSA directly addresses tip pooling and service charges. Employers, managers, and supervisors are not permitted to receive or take any portion of a tip pool or tip share regardless of whether they are taking a tip credit toward the require minimum wage. Other state laws provide additional protection for tipped employees. Review your state laws to find out if tip pooling and service charges are legal in your state. In some states, only certain kinds of tip pooling are allowed, and some states do not view service charges as tips at all.

If you have reviewed the laws in your state and believe you are facing an illegal employment practice at your workplace, do not hesitate to share your concerns with a lawyer.

Harassment and Discrimination for Tipped Employees

Just because you work for tips does not mean you need to put up with harassment or discrimination. If you feel like you are enduring harassment or suffering a hostile work environment in exchange for tips, speak to an attorney. If you believe you are being scheduled in less favorable shifts or assigned to less busy sections of a tipping establishment (e.g., a restaurant) due to your race, religion, gender, or another protected characteristic, speak to an attorney.

The Importance of Documenting Your Employment Experience

As a tipped employee, it’s essential to maintain accurate records of your hours worked, tips received, and any discrepancies you may encounter. Proper documentation not only strengthens your case in the event of wage disputes but also empowers you to assert your rights confidently. At USA Employment Lawyers, we recommend implementing the following practices:

• Keep a Daily Log: Document your shifts, including start and end times, and the tips you receive. This can provide a clear picture of your earnings over time.
• Track Wage Payments: Regularly review your pay stubs for accuracy. Estimate your expected pay based on hours worked and tips and compare this with the amounts presented by your employer.
• Gather Evidence: If applicable, save any communication related to wage issues, such as emails or text messages. This can serve as valuable evidence should you need to pursue a claim.

Additionally, understanding how to properly document your experiences can help identify patterns of unfair treatment, discrimination, or illegal practices regarding tip sharing and wage payment. If you believe your rights are being violated, don't hesitate to reach out to our team for guidance.

Why You Should Choose USA Employment Lawyers

Our team at USA Employment Lawyers enjoys helping tipped employees get paid fairly across the United States. We seek to make a difference for our clients, and we take an ethical approach to the law.

Here are a few reasons why our law firm stands out:

• Expertise in Employment Law: With years of experience handling cases involving tipped employees, we have a deep understanding of both federal and state regulations.
• Personalized Approach: Every case is different, and we pride ourselves on taking the time to understand your unique situation and tailor our strategies to meet your needs.
• Proven Track Record: Our success stories speak volumes. We have helped countless clients secure the wages they deserve and navigate the complexities of employment disputes.
• Compassionate Support: We recognize the stress that comes with employment issues. Our team provides ongoing support and open communication throughout the entire legal process.
• No Upfront Fees: We operate on a contingency basis, meaning you only pay if we win your case, making our services accessible to everyone.

If you have questions or need assistance regarding your rights as a tipped employee, don’t hesitate to reach out. We are committed to fighting for your rights!

For personalized representation and quick and methodical results, call us at (800) 483-0998 or contact us online. We will be in touch soon and stay in constant communication throughout your case.