What are the laws governing wages and tips for tipped employees?

In New Mexico, all tipped employees have the right to receive a minimum wage. Tipped employees are those who receive more than $30 a month in tips from their customers. The minimum wage for tipped employees is set by the Fair Labor Standards Act. This means that an employee is entitled to receive at least the same amount as the state minimum wage in addition to the tips they earn. Employers must also ensure that all tips received by tipped employees are paid out on a regular basis, as well as provide a written statement to employees setting out the amount of tips received each pay period. This statement must also include the amount of wages paid, the amount of tips paid, and the total wages paid for the period. Tipped employees must also be informed of the right to keep all the tips they receive, and employers are prohibited from assessing a charge against tips earned by tipped employees. Employers cannot require tips as a condition of employment or use tips as part of the wage payment for minimum wage. New Mexico laws also require employers to inform tipped employees of their right to keep all tips, which must be paid out in a regular and timely manner. The employer must also provide a separate form for reporting tips to the employer and must not interfere with tips earned by employees. The employer must also display a poster in the workplace informing tipped employees of their rights under the law.

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