(a) With respect to tipped employees, section 3(m)(2)(A) provides that, in determining the wage an employer is required to pay a tipped employee, the amount paid such employee by the employee's employer shall be an amount equal to—
(1) The cash wage paid such employee which for purposes of such determination shall not be less than the cash wage required to be paid such an employee on August 20, 1996 [i.e., $2.13]; and
(2) An additional amount on account of the tips received by such employee which amount is equal to the difference between the wage specified in paragraph (a)(1) of this section and section 6(a)(1) of the Act.
(b) Section 3(m)(2)(A) also provides that an employer that takes a tip credit against its minimum wage obligations to its tipped employees must inform those employees of the provisions of that subsection, and that the employees must retain all of their tips, although the employer may require those employees to participate in a tip pool with other tipped employees that customarily and regularly receive tips.
(c) Section 3(m)(2)(B) provides that an employer may not keep tips received by its employees for any purposes, including allowing managers and supervisors to keep any portion of employees' tips, regardless of whether the employer takes a tip credit under section 3(m)(2)(A).
(d) “Tipped employee” is defined in section 3(t) of the Act as any employee engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips.
[85 FR 86789, Dec. 30, 2020]
Notes of Decisions
Nicholas Gray v. Michael Powers, 673 F.3d 352 (5th Cir. 2012).
“§ 203 (m)(1)-(2); 29 C.F.R. § 531.50 (a). An “ ‘[e]mployer’ includes any person acting directly or indirectly in the interest of an employer in relation to an employee.”
Armenta v. Osmose, Inc., 2006 Cal. Daily Op. Serv. 49 (Cal. Ct. App. 2005).
“§ 203 (m); 29 C.F.R. § 531.50 .) California law expressly forbids a tip credit and employees must receive the full minimum wage.”
Kubiak v. S.W. Cowboy, Inc., 164 F. Supp. 3d 1344 (M.D. Fla. 2016).
“§ 203 (t); 29 C.F.R. § 531.50 (b). . To provide sufficient notice, the employer "must inform its employees that it intends to treat tips as satisfying part of the employer’s minimum wage obligations.”
Winans v. W.A.S., Inc., 772 P.2d 1001 (Wash. 1989).
· cites it 3× “18, 1975), Administrator Murphy found: *536 The interpretations prescribed in 29 CFR 531.50 through 531.60 were issued pursuant to the Act as it was before the 1974 amendments, and have no effect to the extent that they are in conflict with the amended Act.”
Roberts v. Apple Sauce, Inc., 945 F. Supp. 2d 995 (N.D. Ind. 2013).
“See 29 C.F.R. §§ 531.50 -.60. The regulations confirm that an employer may only take the tip credit under section 203(m) if the employee’s occupation is one in which he customarily and regularly receives more than $30 a month in tips.”
Allision v. Dolich, 148 F. Supp. 3d 1142 (D. Or. 2015).
· cites it 2× “See 29 C.F.R. §§ 531.50 et seq., as amended April 5, 2011.”
Robert Parker v. Battle Creek Pizza, Inc., 95 F.4th 1009 (6th Cir. 2024).
“” See generally 29 C.F.R. § 531.50 . The defendants also required each plaintiff to provide the “tools of the trade” for delivering pizzas, namely their own vehicles.”
Bingham v. Airport Limousine Serv., 314 F. Supp. 565 (W.D. Ark. 1970).
“Determination of the actual amount of the wage credit is, however, left by the statute to the employer based upon his information concerning the tipping practices and receipts in his establishment.”
Reich v. ABC/York-Estes Corp., 157 F.R.D. 668 (N.D. Ill. 1994).
· cites it 2× “For the reasons explained below, it is recommended (a) that the Secretary’s motion for a finding of default be granted, and this matter be set for evidentiary hearing on the amounts owed by Defendants; (b) that the court declare the customer’s table dance payments to be “tips”…”
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