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

In Washington state, the laws that govern wages and tips for tipped employees are based on the federal Fair Labor Standards Act (FLSA). According to the FLSA, the minimum wage for tipped employees is the same as the current minimum wage in Washington, which is currently $12.00 per hour. In addition, employees must receive at least minimum wage even if their tips do not meet that wage. Employers are allowed to take a “tip credit” of up to $3.67 per hour, meaning they must pay the difference between their tip income and the minimum wage. Tips are the property of the employee and should not be shared with their employer or other staff members. Tips should also be paid out at least twice each month. It is illegal for employers to make deductions from an employee’s wages for things such as broken dishes, cash shortages, or customers that leave without paying. Employees must also be paid for training time and any extra time spent on tasks beyond their normal shift. Finally, employers must adhere to the “80/20 Rule” which states that at least 80% of a tipped employee’s wages must come from tips. If an employee’s tips do not bring them up to the minimum wage, the employer must make up the difference. Washington state law plays an important role in ensuring that tipped employees are paid fairly and receive the wages they deserve. All employers should familiarize themselves with these laws and ensure they are in compliance.

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

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