In our last post, we discussed the basic theories and history behind tipping, as presented in the Accounting Degree Review’s comprehensive infographic, “Tipping in the United States.” Today, we will discuss the current state of affairs for tipped employees and how they can ensure they receive fair compensation for their work, including seeking advice from reputable New York employment attorneys.
As the infographic indicates, tipped employees only need to earn $30 per month in tips to “qualify” for the subminimum wage, which is currently frozen at $2.13 per hour. However, for full-time employees, $30 in tips on top of the subminimum wage paid by the employer still amounts to much less than minimum wage.
In addition, most states offer employers a “tip credit,” which reduces the wages they must pay to tipped employees based on the tips they receive. The law also stipulates that when employees don’t make enough between tips and their hourly wages to equal minimum wage, the employer must make up the difference. However, many employers do not comply with this law, even when staff or other entities discover the discrepancy.