Question from A, Is it Legal for an Employer in Georgia to Include Tips as Part of the Wage?
Answer from AI:
In the United States, the Fair Labor Standards Act (FLSA) governs wage and hour laws, including those related to tips. According to the FLSA, tips are the sole property of the tipped employee, and 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 (“tip credit”) or in furtherance of a valid tip pool.
Understanding Tip Credit
Under the FLSA, employers can take a “tip credit” towards their minimum wage obligation for tipped employees. The current federal minimum wage is $7.25 per hour, but employers can pay a direct wage as low as $2.13 per hour to tipped employees, provided that the employee’s tips combined with the direct wage of at least $2.13 per hour equal the federal minimum wage. If an employee’s tips combined with the employer’s direct wages do not equal the minimum hourly wage, the employer must make up the difference.
Georgia’s Wage Laws
In Georgia, the state minimum wage is $5.15 per hour, which is lower than the federal minimum wage. However, employers subject to the FLSA must pay the higher federal minimum wage. If you were promised $20 per hour, your employer should be paying you this amount, regardless of tips.
What Does “Tips Earned Towards Wage” Mean?
The phrase “Tips Earned towards Wage” on your paycheck could mean that your employer is using your tips as a credit towards their minimum wage obligation. However, since you were promised $20 per hour, which is significantly higher than the federal minimum wage, it’s unclear why your tips would be used in this way.
What Can You Do?
If you believe your employer is not handling your tips correctly, you can:
- Contact the Wage and Hour Division of the U.S. Department of Labor, which enforces the FLSA. They can provide information and investigate potential violations.
- Consult with a labor or employment attorney for personalized advice based on your specific situation.
Remember, this information is a general guide and not legal advice. Always consult with a legal professional for advice on your specific situation.
For more information on the FLSA and tip credits, you can visit the U.S. Department of Labor’s website.
The answer is written by AI.
The text above is written by AI, i.e., a computer.
Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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