What is the minimum wage for workers who receive tips?
In Illinois, the minimum wage for tipped employees is currently $4.50 per hour. That rate will rise to $4.65 in 2008, $4.80 in 2009, and $4.95 in 2010. Tipped employees must be paid equal to the regular minimum wage, but employers can get credit for the employee’s tips in an amount up to 40% of the wage.
An employer of a tipped employee is required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the Federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the Federal minimum hourly wage, the employer must make up the difference. Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the Federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits. J. J. Keller’s Human Resources Management Guide: An Essential Tool for Managing Day-to-Day HR Responsibilities addresses FLSA requirements.
An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference. Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits. Must young workers be paid the minimum wage? A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer, as long as their work does not displace other workers. After 90 consecutive days of employment or the employee reaches 2
