29 C.F.R. § 531.56

“More than $30 a month in tips.”

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(a) In general. An employee who receives tips, within the meaning of the Act, is a “tipped employee” under the definition in section 3(t) when, in the occupation in which he is engaged, the amounts he receives as tips customarily and regularly total “more than $30 a month.” An employee employed in an occupation in which the tips he or she receives meet the minimum standard in the preceding sentence is a “tipped employee” for whom the wage credit provided by section 3(m)(2)(A) may be taken in computing the compensation due him or her under the Act for employment in such occupation, whether he or she is employed in it full time or part time. An employee employed full time or part time in an occupation in which he or she does not receive more than $30 a month in tips customarily and regularly is not a “tipped employee” within the meaning of the Act and must receive the full compensation required by the provisions of the Act in cash or allowable facilities without any deduction for tips received under the provisions of section 3(m)(2)(A).

(b) Month. The definition of tipped employee does not require that the calendar month be used in determining whether more than $30 a month is customarily and regularly received as tips. Any appropriate recurring monthly period beginning on the same day of the calendar month may be used.

(c) Individual tip receipts are controlling. An employee must him- or herself customarily and regularly receive more than $30 a month in tips in order to qualify as a tipped employee. The fact that he or she is part of a group which has a record of receiving more than $30 a month in tips will not qualify him or her. For example, a server who is newly hired will not be considered a tipped employee merely because the other servers in the establishment receive tips in the requisite amount. For the method of applying the test in initial and terminal months of employment, see § 531.58.

(d) Significance of minimum monthly tip receipts. More than $30 a month in tips customarily and regularly received by the employee is a minimum standard that must be met before any wage credit for tips is determined under section 3(m)(2)(A). It does not govern or limit the determination of the appropriate amount of wage credit under section 3(m)(2)(A) that may be taken for tips under section 6(a)(1) (tip credit equals the difference between the minimum wage required by section 6(a)(1) and the cash wage paid (at least $2.13 per hour)).

(e) Dual jobs. In some situations an employee is employed in a dual job, as for example, where a maintenance man in a hotel also serves as a waiter. In such a situation the employee, if he customarily and regularly receives at least $30 a month in tips for his work as a waiter, is a tipped employee only with respect to his employment as a waiter. He is employed in two occupations, and no tip credit can be taken for his hours of employment in his occupation of maintenance man. Such a situation is distinguishable from that of a waitress who spends part of her time cleaning and setting tables, toasting bread, making coffee and occasionally washing dishes or glasses. It is likewise distinguishable from the counterman who also prepares his own short orders or who, as part of a group of countermen, takes a turn as a short order cook for the group. Such related duties in an occupation that is a tipped occupation need not by themselves be directed toward producing tips.

[32 FR 13575, Sept. 28, 1967, as amended at 76 FR 18855, Apr. 5, 2011; 85 FR 86790, Dec. 30, 2020; 86 FR 60156, 60157, Oct. 29, 2021; 86 FR 71829, Dec. 20, 2021; 89 FR 101887, Dec. 17, 2024]
Notes of Decisions
Cited in 102 cases (44 in the last 5 years), 1970–2026 · leading case: Alec Marsh v. J. Alexander's LLC, 905 F.3d 610 (9th Cir. 2018).
Alec Marsh v. J. Alexander's LLC, 905 F.3d 610 (9th Cir. 2018). · cites it 34× “The en banc court held that the Department of Labor foreclosed an employer’s ability to engage in this practice by promulgating a dual jobs regulation, 29 C.F.R. § 531.56 (e), and subsequently interpreting that regulation in its 1988 Field Operations Handbook, known as the…”
Alec Marsh v. J. Alexander's LLC, 869 F.3d 1108 (9th Cir. 2017). · cites it 44× “Disagreeing with the Eighth Circuit, the panel held that the Department of Labor’s interpretation, in its Field Operations Handbook, of 29 C.F.R. § 531.56 (e), a regulation addressing application of the FLSA’s tip credit provision to the situation in which an employee works for…”
Lindsay Rafferty v. Denny's, Inc., 13 F.4th 1166 (11th Cir. 2021). · cites it 11× “§ 203 (t); see also 29 C.F.R. § 531.56 . Title 29, United States Code, Section 203 (m) codifies this provision.”
Restaurant Law Ctr. v. LABR, 120 F.4th 163 (5th Cir. 2024). · cites it 10× “” 29 C.F.R. § 531.56 (e) (1967–2021). The regulation contrasted this example with that of “a waitress who spends part of her time cleaning and setting tables, toasting bread, making coffee and occasionally washing dishes or glasses.”
Romero v. Top-Tier Colorado LLC, 849 F.3d 1281 (10th Cir. 2017). · cites it 5× “She alleges that the defendants weren’t entitled to take the tip credit for any of the hours she spent performing unrelated non-tipped tasks — a rule that she derives primarily from 29 C.F.R. § 531.56 (e). And she alleges that the 'defendants weren’t entitled to take the tip…”
Grosscup v. KPW Mgmt., Inc., 261 F. Supp. 3d 867 (N.D. Ill. 2017). · cites it 4× “itself does'not prescribe these two separate kinds of violations but the attendant regulation ( 29 C.F.R. § 531.56 (e)), Chapter 30 of the Labor Department’s Field Operations Handbook (the “FOH,” see https://www.”
Restaurant Law Ctr. v. LABR, 66 F.4th 593 (5th Cir. 2023). · cites it 4× “” 29 C.F.R. § 531.56 (f)(4). In turn, a “substantial amount of time” exists when: (i) The directly supporting work exceeds a 20 percent workweek tolerance, which is calculated by determining 20 percent of the hours in the workweek for which the employer has taken a tip credit.”
Cope v. Let's Eat Out, Inc., 354 F. Supp. 3d 976 (E.D. Mo. 2019). · cites it 5× “29 C.F.R. § 531.56 (e). Specifically, subsection "e" states: In some situations an employee is employed in a dual job, as for example, where a maintenance man in a hotel also serves as a waiter.”
Fast v. Applebee's Int'l, Inc., 638 F.3d 872 (8th Cir. 2011). · cites it 3× “See 29 C.F.R. § 531.56 (e). The DOL’s 1988 Handbook provides that if a tipped employee spends a substantial amount of time (defined as more than 20 percent) performing related but nontipped work, such as general preparation work or cleaning and maintenance, then the employer may…”
Driver v. AppleIllinois, LLC, 890 F. Supp. 2d 1008 (N.D. Ill. 2012). · cites it 5× “29 C.F.R. § 531.56 (a). The regulations recognize that in some situations, an employee may be employed in a “dual job,” such as a hotel maintenance employee who also serves as a waiter.”
Pellon v. Bus. Representation Int'l, Inc., 528 F. Supp. 2d 1306 (S.D. Fla. 2007). · cites it 4× “” See 29 C.F.R. 531.56(e). The Department of Labor distinguishes a waitress, who must spend “part of her time cleaning and setting tables, toasting bread, making coffee and occasionally washing dishes or glasses,” from a person dually employed as a waiter and maintenance man.”
McLamb v. Hosp., 197 F. Supp. 3d 656 (D. Del. 2016). · cites it 5× “” 29 C.F.R. § 531.56 (e) (“the dual jobs regulation”).”
— 29 C.F.R. § 531.56(e) — 15 cases
Alec Marsh v. J. Alexander's LLC, 905 F.3d 610 (9th Cir. 2018). “The en banc court held that the Department of Labor foreclosed an employer’s ability to engage in this practice by promulgating a dual jobs regulation, 29 C.F.R. § 531.56 (e), and subsequently interpreting that regulation in its 1988 Field Operations Handbook, known as the…”
Pellon v. Bus. Representation Int'l, Inc., 528 F. Supp. 2d 1306 (S.D. Fla. 2007). “” See 29 C.F.R. 531.56(e). The Department of Labor distinguishes a waitress, who must spend “part of her time cleaning and setting tables, toasting bread, making coffee and occasionally washing dishes or glasses,” from a person dually employed as a waiter and maintenance man.”
Alec Marsh v. J. Alexander's LLC, 869 F.3d 1108 (9th Cir. 2017). “Disagreeing with the Eighth Circuit, the panel held that the Department of Labor’s interpretation, in its Field Operations Handbook, of 29 C.F.R. § 531.56 (e), a regulation addressing application of the FLSA’s tip credit provision to the situation in which an employee works for…”
Harrison v. Rockne's Inc., 274 F. Supp. 3d 706 (N.D. Ohio 2017).
Lindsay Rafferty v. Denny's, Inc., 13 F.4th 1166 (11th Cir. 2021). “§ 203 (t); see also 29 C.F.R. § 531.56 . Title 29, United States Code, Section 203 (m) codifies this provision.”
— 29 C.F.R. § 531.56(f) — 1 case
— 29 C.F.R. § 531.56(f)(4) — 1 case
— 29 C.F.R. § 531.56(f)(5) — 1 case
Neuhoff v. Hosp. Goals LLC (N.D. Ohio 2025).
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