What are the laws governing the payment of employee tips?

In Maryland, the state has specific laws that govern payment of employee tips. The Maryland Code of Labor and Employment law states that employers are not allowed to deduct any money from a tipped employee’s pay. This includes taxes, fees, or other costs. An employer also cannot require a tipped employee to share or pay any portion of their tips to other employees. Employers must always pay tipped employees at least the minimum hourly wage that the state has set. This wage will always be higher than the federal minimum wage. Any tips the employee earns must be in addition to the minimum wage amount. Employers must also clearly inform their employees of any policies that may affect how they receive, keep, or use their tips. This way, employees are aware of their rights and responsibilities when it comes to receiving and using the tips they earn. Employees who feel they are not being paid the proper amount of tips they are owed or are being required to share their tips may contact the Maryland Department of Labor, Licensing, and Regulation. They will investigate the complaint and take action if necessary.

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