What amount must an employer pay a tipped employee?
Compensation for a tipped employee must total at least the minimum wage rate which currently is $7.25 per hour. Employers subject to the provisions of the law are required to pay tipped employees at least 50 percent of the minimum wage of $7.25, or $3.625 per hour. Employers of tipped employees must pay more than 50 percent of the minimum wage rate to tipped employees if it is necessary to bring the employee′s total compensation up to at least the minimum wage rate per hour. In other words, the employer is required to make up any difference between the minimum wage amount and the actual base wage and tips received by the employee.
