In Part I of this article, I explained how employers can legally pay servers $2.13 per hour and then use servers’ tips in order to make up the difference between that rate and minimum wage. However, in order to take advantage of what amounts to legal wage theft, employers have to abide by certain requirements.
First, an employer must notify servers that it is taking the tip credit. This can be either oral or written. Second, once the employer takes a tip credit, it must make sure that the employee is at least making minimum wage. If employees are being paid $2.13 per hour and their tips do not bring them to minimum wage, then the...Read More