An employee engaged in an occupation in which he or she regularly receives more than $30 a month in tips may have the amount of tips credited by the employer against the minimum wage required by the SCA. The following rules must be observed: (1) The employer must notify the employee about the tip credit allowance before the credit is utilized; (2) The employees must be allowed to retain all tips (individually or collectively); (3) The employer must be able to show by records that the employee receives at least the applicable SCA minimum wage through the combination of direct wages and tip credit; and (4) The use of the tip credit must have been permitted under any predecessor collective bargaining agreement applicable by virtue of section 4(c) of the SCA.
October 2018
Tags: Wage and Hour, Wage rates