Are employers allowed to pay tipped employees less than minimum wage?

In Oregon, employers may pay their tipped employees less than the minimum wage, but only if there are specific criteria met. To do so, employers must pay their tipped employees a direct wage of at least $9.25 an hour. This is the same minimum wage as the Oregon Standard Minimum Wage. Additionally, employers must follow the “tip credit” rule. Under this rule, the employer must credit the employee’s tips toward their hourly pay, up to an additional $3.32 on top of their direct wage. The total amount of the tipped employee’s direct wage and their tip credit must be equal to or higher than the state’s standard minimum wage. If an employer fails to pay at least the minimum wage, employees may seek remedies through Oregon’s wage and hour laws. In addition, employers must provide employees with written notice of their tip credit. This notice must clearly explain the amount of the tip credit, as well as the requirements mentioned above. Furthermore, employers must keep accurate records of the tipped employee’s hours worked and the amount of tips they receive. It is important for employers to ensure they are meeting the necessary requirements to pay tipped employees less than the minimum wage to avoid any potential penalties or legal action.

Related FAQs

What are the requirements for shift differentials?
What is the difference between overtime hours and double time?
Are employers allowed to require employees to work additional hours without pay?
How is wage and hour law different from labor law?
What is the difference between compensatory time and overtime pay?
Are employers allowed to pay a lower rate for piecework?
Are employers allowed to offer bonuses in lieu of wages?
What are the restrictions on paying workers under the age of 18?
What is the Fair Labor Standards Act (FLSA)?
What is the child labor law?

Are employers allowed to pay tipped employees less than minimum wage?

Related FAQs

Related Blog Posts