{"id":357878,"date":"2016-04-04T10:45:29","date_gmt":"2016-04-04T15:45:29","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/wages-and-benefits\/tipped-employees-under-the-flsa.html"},"modified":"2025-04-01T00:00:00","modified_gmt":"2025-04-01T05:00:00","slug":"tipped-employees-under-the-flsa","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/tipped-employees-under-the-flsa.html","title":{"rendered":"Tipped Employees Under the FLSA"},"content":{"rendered":"\n
\n \n
\n

Tipped Employees Under the FLSA<\/h1>\n
\n
\n By Lisa Burden, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

\n
\n
\n

Key Takeaways<\/h2>\n

The "tip credit" system under the Fair Labor Standards Act is designed to ensure that when combined with tips, a worker’s earnings meet or exceed the minimum wage. But, if tips plus gratuity do not reach the minimum wage, the employer must cover the shortfall. Some state laws require employers to adapt a higher local minimum wage than the federal rate.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n

The Fair Labor Standards Act (FLSA) mandates employees a minimum hourly wage of $7.25. But, the federal employment law allows employers to pay some workers less than the federal minimum wage<\/a>. Employees in the food and beverage industries often get gratuities from customers on top of cash wages paid by the employer. Under the tip credit provisions found in the FLSA, employers can pay tipped employees<\/a> a smaller hourly wage.<\/p>\n

As a tipped worker, you shouldn’t have to be concerned about unpaid wages due to tip credit issues. Talk to a local employment attorney<\/a> to understand your rights and explore options for recovering any owed wages.<\/p>\n

Tipped workers usually get more than $30 in tips in a month. Examples of tipped workers<\/a> include:<\/p>\n