Share on LinkedInShare on LinkedIn

ARTICLE · 08 JULY 2016

USDOL's Tipped-Employee "Subminimum Wage" Fiction

A recent U.S. Labor Department blog post re-casts the agency's long-running campaign against an alleged "subminimum wage for tipped workers" under the federal Fair Labor Standards Act.

United StatesEmployment and HR

A recent U.S. Labor Department blog post re-casts the agency's long-running campaign against an alleged "subminimum wage for tipped workers" under the federal Fair Labor Standards Act.  Although this latest pitch introduces a different phrase, USDOL also recycles last year's canard that "[t]he current federal tipped minimum wage .  .  . still stands at just $2.13 per hour."

USDOL's premise was and continues to be flatly untrue.  There is no "subminimum wage for tipped workers" under the FLSA.  It is not so that the "current federal tipped minimum wage" is $2.13 per hour, and it never has been.

One More Time . . .

We have pointed out before that the FLSA's minimum wage for tipped employees is exactly the same as for all other non-exempt workers:  $7.25 an hour at present.  Under today's version of the FLSA's 50-year-old "tip credit" provision, the $2.13-per-hour figure is simply the lowest cash wage that may be paid to a tipped employee, provided that the

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from