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TIP CREDIT, TIP POOLING AND SERVICE CHARGES

(TITLE 26: LABOR AND INDUSTRY: CHAPTER 7 - EMPLOYMENT PRACTICES: SUBCHAPTER III: MINIMUM WAGES; SECTION 664)

An employer may consider tips as part of the wages of a service employee, but such a tip credit may not exceed 50% of the minimum hourly wage established in this section. An employer who elects to use the tip credit must inform the affected employee in advance and must be able to show that the employee receives at least the minimum hourly wage when direct wages and the tip credit are combined. Upon a satisfactory showing by the employee or the employee's representative that the actual tips received were less than the tip credit, the employer shall increase the direct wages by the difference.

FULL TEXT OF THE LAW

Release Date: 1/29/2001 12:00:00 AM