What is the minimum wage for tipped workers?

In Indiana, the minimum wage for tipped workers is $2.13 an hour. This is the rate specified in the Indiana Wage & Hour Law. While employers are allowed to pay tipped employees this rate, they must also make sure they earn at least $7.25 an hour once tips are added in. If it is found that the employee did not make that amount, the employer must make up the difference. When an employee receives tips, the employer must inform them of the minimum wage for tipped workers and the applicable tip credit. Employers must keep records of all tips received, including the date and amount of the tips and pertinent employee information. If a tipped employee spends more than 20% of their workweek performing nontipped duties, such as cleaning or washing dishes, their employer must pay the full minimum wage rate of $7.25 an hour for all the hours spent performing these duties. It is important for employers to follow all Indiana Wage & Hour Law regulations to ensure they are meeting the legal requirements. If employees feel their employer is not following the law or paying the correct rate, they can file a complaint with the Department of Labor.

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