The wage credit permitted on account of tips under section 3(m)(2)(A) may be taken only with respect to wage payments made under the Act to those employees whose occupations in the workweeks for which such payments are made are those of “tipped employees” as defined in section 3(t). Under section 3(t), the occupation of the employee must be one “in which he customarily and regularly receives more than $30 a month in tips.” To determine whether a tip credit may be taken in paying wages to a particular employee it is necessary to know what payments constitute “tips,” whether the employee receives “more than $30 a month” in such payments in the occupation in which he is engaged, and whether in such occupation he receives these payments in such amount “customarily and regularly.” The principles applicable to a resolution of these questions are discussed in the following sections.
[32 FR 13575, Sept. 28, 1967, as amended at 76 FR 18855, Apr. 5, 2011; 85 FR 86789, Dec. 30, 2020]
Notes of Decisions
Pellon v. Bus. Representation Int'l, Inc., 528 F. Supp. 2d 1306 (S.D. Fla. 2007).
“§ 203 (m); 29 C.F.R. § 531.51 . The tip credit is not an exemption; instead, it is set forth in the definition of the required minimum wage.”
Knox v. Jones Grp., 201 F. Supp. 3d 951 (S.D. Ind. 2016).
“The question presented by this action is whether Plaintiffs were, in fact, employed in two distinct occupations, or whether, as Defendants maintain, they were employed in a single occupation that was comprised of both tip-producing and incidental, non-tip-producing tasks.”
Roberts v. Apple Sauce, Inc., 945 F. Supp. 2d 995 (N.D. Ind. 2013).
“29 C.F.R. § 531.51 . The regulations further recognize that employees may be engaged in dual jobs for an employer: Dual jobs.”
Fast v. Applebee's Int'l, Inc., 502 F. Supp. 2d 996 (W.D. Mo. 2007).
“§ 203 (t); 29 C.F.R. § 531.51 . Thus, Applebee’s is only required to directly pay a fraction of the minimum wage ($2.”
Johnson v. VCG Holding Corp., 845 F. Supp. 2d 353 (D. Me. 2012).
“65 The Plaintiffs argue that under 29 C.F.R. § 531.51 , for an employer to obtain a “tip credit,” it must be the “customer” who tips the “employee.”
Martins v. MRG of South Florida, Inc., 112 So. 3d 705 (Fla. 4th DCA 2013).
“29 C.F.R. §§ 531.51 & 531.59(b). Those facts are in dispute in this case, and thus MRG is not entitled to judgment as a matter of law.”
Solis v. Lorraine Enter., 907 F. Supp. 2d 186 (D.P.R. 2012).
“The Act would require that, to be allowed credit for the tips as to the minimum wage requirements, the employer: (1) informs the employee of the provisions of section 3(m), and (2) that all tips received by such employee have been retained by the employee, except that said…”
Nail v. Shipp (S.D. Ala. 2019).
“The following requirements must be met to satisfy Section 203(m): (1) the tip credit must be claimed for qualified tipped employees; (2) the employees must receive proper notice of Section 203(m); and (3) all tips received by the employees must be retained by them.”
James v. Boyd Gaming Corp. (D. Kan. 2021).
“§ 203 (m)(2)(A); see also 29 C.F.R. § 531.51 (“The wage credit permitted on account of tips .”
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