Are employers allowed to pay tipped and non-tipped employees different wages?
Yes, employers in North Carolina are allowed to pay tipped and non-tipped employees different wages according to the state’s wage and hour law. North Carolina law states that the minimum wage must be paid to all employees without exception. However, tipped employees may be paid a lower wage than non-tipped employees. The difference in wage rate for tipped and non-tipped employees is determined by the number of hours worked and the employer’s regular rate of pay. Employers must pay tipped employees at least $2.13 per hour, plus tips received. In addition, employers must also ensure that employees’ tips, when combined with the hourly wage, equal at least the minimum wage of $7.25 per hour. If the tips do not cover the minimum wage, the employer must make up the difference. The wage and hour laws in North Carolina also require employers to keep accurate records of the hours worked and wages paid for all employees. Employers must also provide employees with a wage statement each pay period indicating their earnings and deductions. Ultimately, employers in North Carolina are allowed to pay tipped and non-tipped employees different wages. However, they must ensure that both groups of employees receive the state’s minimum wage, at least $7.25 per hour, either through their hourly rate combined with tips or solely through their hourly rate.
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