How Tipped Employees should be paid.

This is a video about Tipped Employees

I'm going to talk to you about how tip employees should be paid. So first let's talk about what a tip employee is. A tip employee is someone that receives $30 or more a month in tip, and usually works in a restaurant, bar, or a position where they interact with customers and they are tipped by the customers for their good service. Examples are servers, bartenders, counter personnel, bellhops those are type of people that provide good service in return for good tips.

Now, let's talk a little bit about how tips work first. Every tip employee by law has to be paid the minimum wage of 7. 25 an hour. You can pay a tipped employee in two ways.

One is you can pay them by the hour, at least 7 25 an hour, but whatever you pay, , the tip employee on an hourly rate that is called a cash wage. We'll get to that in a little bit. So you have to pay them under option one. An hourly rate of at least 7 25 an hour or more .



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