Tipped-worker employers should immediately respond to the misleading "tipped minimum wage" PR campaign.
Our partner Tom Rebel has prepared an overview of the U.S. Labor Department's final regulations "Establishing a Minimum Wage for Contractors" under Executive Order 13658.
A White House report promoting a substantial jump in the FLSA's minimum wage perpetuates now-widely-disseminated propaganda about an alleged "tipped employee minimum wage" of $2.13 per hour.
The White House Press Office reports that President Obama has now signed an Executive Order to raise the minimum-wage rate for workers on federal contracts.
Now that the election is behind us, employers should consider what they might anticipate in the field of wage-hour law.
A bill introduced last week would raise the federal Fair Labor Standards Act's minimum wage to $10.00 per hour.
If a 35% spike in the FLSA minimum wage, a $590-per-week increase in the salary amount required for exempt "white collar" workers, an immediate 41% rise in the cash wage required for tipped employees, and a new paid-time-off requirement are prescriptions for an economic upturn, then help might be on the way.
It is all-too-common for employers to make expensive mistakes where the FLSA tip-credit is concerned.
The U.S. Labor Department's new FLSA "tip-credit" pronouncements are a mixed-bag for employers.
H.R. 631 would amend the FLSA to increase the required cash wage for tipped employees by more than 150%, from the current $2.13 per hour to at least $5.50 per hour.