Employers must take into account the wage-hour requirements and restrictions of all jurisdictions in which they employ tipped workers, as well as how these provisions interact with the FLSA's requirements.
There is no such thing as an FLSA "subminimum wage for tipped workers".
Tipped-worker employers should immediately respond to the misleading "tipped minimum wage" PR campaign.
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.
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.