Can tipped employees be paid less than minimum wage?
Yes and no. See 455 CMR 2.02 for detailed information. The minimum wage for tipped employees (that is, employees who receive more than $20 a month in tips) is $2.63 an hour. However, for employers to pay these employees this different minimum wage they must inform the employee of this law and the employee must receive at least the minimum wage as determined by MGL c.151 s. 1) when actual tips and wages are combined. In addition, all tips must be retained by the employee or distributed through a valid tip-pool as defined by MGL c.149 s.152A. If the combined wages and actual tips do not at least equal the regular minimum wage, the employer must pay the employee the difference. MGL c. 151 s. 7.
