Does the definition of gross income for tipped employees include reported tip income?
The Labor Commissioner has correctly interpreted the new constitutional provision to confirm that tips cannot be counted as wages against or as a credit to reduce the required minimum wage. However, according to his answer to question 10 above, tips and gratuities “may be used to calculate the employee’s share of the premium costs.” To clarity, in this case, both the question and the Commissioner’s answer refer to the premium costs of the offered health insurance plan.
