Q » What are the labor laws concerning tipped employees?
16 Oct, 2025
A » Tipped employees in the U.S. are subject to federal labor laws, notably the Fair Labor Standards Act (FLSA), which allows employers to pay a minimum cash wage of $2.13 per hour, provided tips make up the remainder to reach the federal minimum wage of $7.25. Employers must ensure tips are sufficient to meet this, and any tip pooling arrangements must be fair and transparent, benefiting only employees who customarily receive tips.
16 Oct, 2025
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