Are employers allowed to pay tipped and non-tipped employees different wages?
Yes, employers in Louisiana are allowed to pay tipped and non-tipped employees different wages. The federal Fair Labor Standards Act (FLSA) states that employers must pay a minimum wage of $7.25 per hour, but they can also count tips as part of an employee’s wages. This means that employers can pay tipped employees as little as $2.13 per hour, as long as their tips make up the difference between that and the minimum wage. In Louisiana, restaurants and other establishments can take advantage of the FLSA’s tip credit rule. These establishments can pay tipped employees a minimum of $3.30 per hour — as long as their tips bring their wages up to at least the federal minimum wage. At the same time, these same establishments must pay any non-tipped employees at least the full federal minimum wage of $7.25 per hour. Employers in Louisiana must also abide by the state’s Minimum Wage Act and Fair Pay Law. These laws provide protection from pay discrimination based on race, gender, religion, or other characteristics. Employers must pay all employees the same wages for the same type and amount of work. In summary, employers in Louisiana are allowed to pay tipped and non-tipped employees different wages. However, employers must comply with the state Minimum Wage Act and Fair Pay Law, and must pay all employees the same wages for the same type and amount of work. Additionally, employers must pay tipped employees at least $3.30 per hour or $7.25 per hour, whichever is greater.
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