Are employers allowed to pay tipped employees less than minimum wage?
In Nevada, employers are allowed to pay tipped employees less than the minimum wage, as long as certain criteria are met. A tipped employee is someone who regularly receives more than $30 of tips per month. For these employees, an employer can pay a minimum wage of as low as $8.25 as long as the tips and hourly wages make up at least the minimum wage. For example, if an employee is paid $8.25/hr plus received $3/hr in tips, the employer has met the minimum wage requirement. It is important to note that employers must inform tipped employees of their rights and that tips are property of the employee. Employers must also provide detailed records of tipped wages and tips. Additionally, employers cannot require employees to share tips with managers or other non-tipped employees. The Nevada Department of Business and Industry monitors minimum wage laws, and their website provides an array of information and guidance on wage and hour requirements. Employees and employers who are unsure of their rights and obligations should always seek legal advice.
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