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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 27635
Experience:  Former judicial law clerk, lawyer
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Currently, we paying our wait staffs $3.35 + $ 12.95 tips

Customer Question

Currently, we paying our wait staffs $3.35 + $ 12.95 tips per hour, with overtime rate, $ 9.88 per hour +$12.95 tips reporting, that's $22.83 per hour. Wow! That's $ 7.83 over the minimum. Are we paying correctly?
Submitted: 10 months ago.
Category: Employment Law
Expert:  Lucy, Esq. replied 10 months ago.

Hi,

I'm Lucy, and I'd be happy to answer your questions today.

Massachusetts law requires that a tipped employees receive at least $3.35 per hour, as long as their tips bring them up to $10/hour. As long as you are accurately reporting the tips they're getting and paying $10/hour when an employee doesn't get tips to bring them up to $10/hour, that is correct. When servers work overtime, their tips plus minimum wage must work out to at least $15/hour, but the tip credit is the same.

When tips put the servers over the minimum wage, that's really just more incentive for them to provide good service, which will hopefully result in customers returning to your restaurant (that's the idea between allowing a tip credit instead of making you pay $10/hour flat rate).

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