Federal minimum wage rules govern how they can be pooled among restaurant workers
By Ann Belser / Pittsburgh Post-Gazette
Jesse Seager was mortified when he found out that what he was doing was wrong.
An audit by the U.S. Department of Labor found the system his restaurants had put in place for sharing tips was not in compliance with federal law.
Mr. Seager said he was trying to do what was fair for all of the employees at his two restaurants, Point Brugge Cafe in Point Breeze and Park Bruges in Highland Park, where tips are collected by the restaurant and credited to the appropriate employees. Then the tips would be distributed in paychecks to the individual servers, with a percentage pulled out to be given to the bartenders, the hostesses and the dishwashers.
It was the dishwashers that got him in a jam.
The Department of Labor, it turns out, has rules about how restaurants can structure tip sharing and what those businesses can demand of their employees' tips.
Federal minimum wage is $7.25 per hour for the first 40 hours in a week. However, the law allows employers to pay employees who also receive tips less than the standard minimum wage. In Pennsylvania, that would be $2.83 an hour.
Here's the caveat: If you pay an employee less than the federal minimum wage, then you can't take back the money they make in tips. That money is theirs.
There is more here:
Read more: http://www.post-gazette.com/stories/business/legal/federal-minimum-wage-rules-govern-how-they-can-be-pooled-among-restaurant-workers-664652/#ixzz2EB8XtWkY