Is this true, or is it a R.W. talking point?

[Lunacee_2013]

So I was reading a blog about what it's like working in the restaurant industry and came across a comment about tipping and the minimum wage. The commenter said that if a waitress's tips don't equal what she would make if she earned the regular minimum wage, then the employer had to make up the difference. They said it was a federal law and why we have two levels to the minimum wage. I've never heard of this before. Does anyone know if it is true?

[gcomeau]

1. From the source...

http://www.dol.gov/elaws/faq/esa/flsa/002.htm

[Lunacee_2013]

3. Thank you, gcomeau!

That answered my question perfectly.

[Gravitycollapse]

2. It is true.

[Lunacee_2013]

4. Thanks GC,

I had never heard of this before, only that tipped employees were taxed at the same rate as non-tipped workers, no matter how much (or how little) they were tipped. Judging by what I've heard from those who work as wait staff, I don't think everybody knows this.

[booley]

5. not in Missouri

Had a room mate who was a waiter. More then once he came ended up spending more then he made. His employer never made up the difference at any point in the year.

IF what the commentator had said was true, that should not have been the case.

[Egalitarian Thug]

6. Or in many other places, but as we have learned over the last few years, there's

a big difference between what the law requires and what is actually enforced.

Remember that it's not like we're talking about banksters or executives, you know, people that actually matter.

[Lunacee_2013]

7. Yeah, that's why I'm worried about working class folks not knowing this.

This is from the link posted up thread:

The Fair Labor Standards Act (FLSA) requires payment of at least the federal minimum wage to covered, nonexempt employees. An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions which provides the greater benefits.

So apparently employers are suppose to make up the difference and since its a federal law, it should apply to every tipped worker in America. Although it seems like some employers either don't know this themselves, or don't care.

[hootinholler]

9. Hard to enforce

The employer can claim that tips are under reported.

[Egalitarian Thug]

10. I'm sure it would be if they tried. n/t

[Recursion]

8. I've never seen it need to be done, but that is the law and everyone I worked with knew about it

We might joke on a slow night "looks like they'll have to bump up my hourly", but I don't recall a night slow enough that they ever needed to (they'd just send whoever had done well on tips home early, anyways).