Are employers allowed to pay tipped and non-tipped employees different wages?

In California, employers are allowed to pay tipped and non-tipped employees different wages. The state follows federal wage and hour law, which allows employers to pay a lower wage to employees who are expected to receive tips. However, the employer is required to make up the difference between the lower wage and the state’s minimum wage if the employee’s tips do not make up the difference. For employees who do not receive tips, employers must pay the full state minimum wage, which is currently $12.00 per hour for employees who work for an employer with 26 or more employees, or $11.00 per hour for those who work for an employer with 25 or fewer employees. There is also a provision in California’s wage and hour law that allows employers to pay a lower minimum wage to certain specific categories of employees, such as certain learners, student learners, and apprentices. Additionally, some local laws and ordinances in California require that employers pay higher minimum wages than the state minimum wage. Employers must be aware of the laws, both state and local, and make sure they are paying employees the correct minimum wage. Failure to do so can result in significant penalties and fines.

Related FAQs

What are the laws regarding the payment of bonuses?
What type of records must employers keep in regards to wage and hour laws?
What is the difference between a collective bargaining agreement and a wage and hour law?
What is the federal minimum wage?
What are the differences between independent contractors and employees?
Are employers allowed to pay tipped employees less than minimum wage?
What are the rules for tip-pooling?
Are employers allowed to pay employees differently based on gender or race?
What is the overtime rate for hourly employees?
What are the rules for paying interns?

Are employers allowed to pay tipped and non-tipped employees different wages?

Related FAQs

Related Blog Posts