Tipped Minimum Wage" Nonsense Continues

A recent post appearing on the U.S. Labor Department's blog begins, "The federal tipped minimum wage has been $2.13/hour since 1991. That's right – it's been the same for nearly a quarter century."

Actually, that's wrong.

There is no such thing as a purportedly lower "tipped minimum wage." The federal Fair Labor Standards Act's minimum wage for tipped employees is precisely the same as for all other nonexempt, non-tipped workers: $7.25 an hour at present. The $2.13 figure is simply the lowest cash wage that may be paid to a tipped employee, so long as the employee also receives enough in tips to bring his or her wages to $7.25 an hour. Otherwise, the employer must pay the worker additional cash wages to bring his or her rate up to $7.25.