What is the minimum wage for tipped workers?
The minimum wage for tipped workers in California is $12.00 per hour or $2.00 higher than the current statewide minimum wage of $10.00 per hour. This means that employees who receive tips must be paid the full minimum wage of $12.00 per hour, plus tips, by their employer. Employers must make sure that tipped employees still earn at least the full minimum wage when tips are included. If the amount of tips received by the employee during a workweek, combined with the employer’s wages, does not result in at least the California minimum wage of $12.00 an hour, the employer must make up the difference. In California, employers may also pay the “tip credit” of $3.00 per hour. This means that, for employees who make tips, the employer must pay the employee at least $9.00 per hour and make up the difference if the employee’s tips do not add up to the full minimum wage of $12.00 per hour. In this case, the employer must still make sure that the employee receives at least the full minimum wage of $12.00 per hour when the tips are included. It is important that employers both understand and follow the wage and hour rules to ensure their employees are receiving a fair wage. All employees, including tipped employees, must be paid the California minimum wage of $12.00 per hour or higher.
Related FAQs
When can an employer legally deduct wages from an employee's paycheck?What is the difference between a minimum wage job and a living wage job?
How are bonuses calculated when employees are paid by the hour?
Are employers allowed to pay tipped and non-tipped employees different wages?
What provisions does the FLSA provide for overtime pay?
What is the Family and Medical Leave Act (FMLA)?
What is the difference between overtime hours and double time?
Are employers allowed to offer bonuses in lieu of wages?
Are employers allowed to pay employees differently based on their job duties?
What types of benefits are covered by wage and hour law?
Related Blog Posts
What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023