Tipped Employees

Under the FLSA, the federal minimum wage for tipped workers is $2.13 an hour. However, the wages plus tips must equal at least $7.25 per hour. If the wages and tips does not equal at least $7.25 per hour the employer must pay the employee the difference.

In Ohio, the minimum wage for tipped workers is $4.05 per hour. However, the wages plus tips must equal at least $8.10 per hour. If the wages and tips does not equal at least $8.10 per hour the employer must pay the employee the difference.

In order to be properly considered a tipped employee, the employee must retain all tips, and must customarily and regularly receive more than $30.00 a month in tips. An employer is prohibited from using an employee's tips for any reason other than as a credit against its minimum wage obligation to the employee or in furtherance of a valid tip pool. A tip pool or other sharing arrangement is one among employees who customarily and regularly receive tips, such as waiters/waitresses, bellhops, parking attendants, bussers, and bartenders. To be a valid tip pool the tips cannot be shared with employees who do not customarily and regularly receive tips, such as janitors, cooks, dishwashers, and managers.

Only tips actually received by the employee may be counted in determining whether the employee is a tipped employee and in applying the tip credit.