Are employers allowed to pay tipped employees less than minimum wage?
In Florida, like in every other state in the United States, employers are allowed to pay tipped employees less than minimum wage. This is referred to as the tip credit. Under the tip credit, employers are allowed to pay tipped employees as little as $5.44 an hour, which is the federal minimum wage of $7.25 minus the tip credit of $1.81. Employers can also take a larger tip credit if the tips an employee earns total more than $7.25. However, employers must make sure that the combination of tips plus the tipped minimum wage still equals at least the regular minimum wage of $8.46 in Florida. Employers also need to ensure that tipped employees are actually making enough tips to get to the regular minimum wage. If employees do not make enough tips they must make up the difference with their own wages. Employers must also provide a copy of the tip credit laws to tipped employees, ensure that all tips are kept by the employee, require tips to be reported on a daily basis, and monitor tips to make sure that all employees are correctly compensated. It is important for employers to follow all of the wage and hour laws in Florida, including those related to tipped employees. Violations of the wage and hour laws could result in serious penalties and fines. Therefore, employers should familiarize themselves with the tip credit laws and make sure that they are following the appropriate regulations.
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