What is the minimum wage for tipped workers?

In Arizona, the minimum wage for tipped workers is set at an hourly rate of $8.05. This amount is higher than the federal minimum wage of $7.25, which applies to non-tipped employees. All tipped employees in Arizona must make at least the state-mandated minimum wage of $8.05 an hour, regardless of how much they make in tips. An employer is allowed to count the tips a tipped employee earns as part of their wage as long as the employee earns at least the state minimum wage when their tips are combined with their regular hourly wage. For instance, if an employee earns $5.05 per hour and makes an average of $2.00 in tips each hour, the employer can count those tips as part of the employee’s wages and pay the employee the minimum wage of $8.05 an hour. Employers must also provide employees with a written statement each pay period that indicates the hourly wage they are paid, the amount of tips received, and the total amount of compensation earned. This information can help tipped employees easily determine if they are earning at least the minimum wage for their work. Additionally, employers must follow all requirements for properly reporting and paying taxes on tips received by employees. In Arizona, employers are responsible for ensuring that all employees are paid at least the minimum wage and must take the necessary steps to make sure tipped employees are properly compensated.

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What is the minimum wage for tipped workers?

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