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Do tipped employees in Florida have a lower minimum wage?

On Behalf of | May 28, 2024 | Employment Law |

Paying wages as a business owner may seem straightforward at first. Nonetheless, many employees are considered to be tipped employees, which makes matters a little more complex. 

What are tipped employees and do they have a lower minimum wage in Florida? 

Classifications for tipped employees 

Florida follows federal laws on the classification of tipped employees. According to the Fair Labor Standards Act (FLSA), tipped employees are those who customarily receive more than $30 per month of their income as tips. Often, tipped employees work in the hospitality industry. 

Can employers keep tips? 

It’s important to note that Florida business owners are not entitled to keep the tips that workers receive. However, they are entitled to take a tip credit. 

What is a tip credit?

A tip credit is a deduction that employers are allowed to make in certain conditions. However, to implement a tip credit, the employer must show that with tips and base pay, the employee makes at least the state’s minimum wage, which is currently $12 per hour. If this is the case, then the employer can deduct $3.02 per hour, leaving the employee with a base rate of $8.98 per hour.  

Wage and hour laws can be complex where tipped employees are concerned. Employers have to ensure that they are efficient and not spending too much on wage bills, but at the same time, employees typically cannot be paid below the state’s minimum wage of $12 per hour. 

Having the appropriate legal guidance behind you when dealing with wages can help you to avoid errors. We help businesses remain in line with employment laws. Call us today for a consultation.