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

In Mississippi, employers are allowed to pay tipped and non-tipped employees different wages. However, there are special circumstances that must be taken into consideration. The federal Fair Labor Standards Act (FLSA) requires that all employers must pay tipped employees at least $2.13 per hour in direct wages. In addition, employers must make up the difference if the employee’s tips combined with the direct wages do not equate to the minimum wage. This is referred to as the “tipped employee minimum wage”. Non-tipped employees are subject to the same minimum wage rate as any other employee in the state of Mississippi. This rate is currently set at $7.25 per hour. Therefore, if an employer pays a non-tipped employee less than this amount, they will be in violation of the FLSA. In some cases, there are exceptions to this rule. For instance, any employee under the age of 20 is permitted to be paid a sub-minimum wage of $4.25 per hour for the first 90 days of employment. Additionally, certain salaried employees may be eligible to be paid a lower rate than the standard minimum wage. To ensure compliance with the law, employers must check and confirm that all employees are receiving the applicable minimum wage rate for their state and position. This is especially important when dealing with tipped and non-tipped employees, as they must both be paid at least the applicable minimum wage.

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

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