The Labor Law for Wait Staff Minimum Wage

(Last Updated On: April 19, 2021)

Although federal and laws set the minimum hourly wage for all workers in the United States, there are exceptions for workers who receive tips such as wait staff with no minimum wage. This article will give an overview of the wait staff minimum wage.

The Wait Staff Minimum Wage

The law allows states to adjust their minimum wage below so that they can account for advice. For many restaurant and service business staff, tips make up the bulk of their compensation.

As a result, your minimum wage as a restaurant server depends on where you work. You can find a good law firm that can help you to make your job done without any hassle as and when you need it.

Fair Labor Act for Wait Staff Minimum Wage

The Fair Labor Standards Act stipulates federal laws regarding overtime pay and the minimum age of workers in relation to minimum wages.

As of 2012, the minimum wage for “exempt” employees was $ 7.25 an hour, which means those who are subject to the law. Include exempt employees who receive tips as part of their regular compensation.

Tip credit

The law allows states to set separate minimums for restaurant workers. States can pass their own laws that include a “tip credit” up to $ 5.12 against the minimum wage.

In other words, giving employers the maximum tip credit would mean an effective minimum wage of $ 2.13 for tipped employees, as it would in Alabama, Mississippi, South Carolina, and Tennessee, which do not have their own minimum wage laws.

It will also include states that allow the most tips: Credit: Indiana, Kansas, Kentucky, Nebraska, New Jersey, New Mexico, New York (with exception), North Carolina, South Dakota, Texas, Utah, Virginia, and Wyoming.

Complete minimum-wage states

A small group states allow no tip credit against the minimum wage and set their own minimum wage higher than the federal rate.

This group includes Alaska, $ 7.75 per hour; California, $ 8; Oregon, $ 8.80; And Washington, $ 9.04.

Minnesota and Montana separate the minimum wage for large and small employers as defined by their annual gross sales.

There is a minimum wage rate for companies, depending on whether Nevada provides health insurance.

Compensation for the minimum wage

The IRS Tipped Employees are required to share their tips with the employer and the IRS.

Cash and non-cash tips are considered taxable income, although not all cash tips are required to be reported to the employer.

If a proposed employee doesn’t even earn the state’s minimum wage with reporting tips, employers in some states will have to make a difference with higher pay.

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Wait Staff Minimum Wage

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