BEO Show

Employers must know these rules for tipped employees

The U.S. Department of Labor exists so all employees are treated fairly and equitably, and it is vital for business owners to understand the rules that the department sets in place.

Lacey Houle, Community Outreach and Resource Planning Specialist for the U.S. Department of Labor, discussed the difference between tipped employees and non-tipped employees.

If a business has tipped employees, they need to pay them a cash wage of at least $2.13 per hour or minimum wage. If they choose the cash wage, they must ensure the employee is earning enough in tips to meet the federal minimum wage of $7.25 per hour.

For more information on tipped employees, click here.

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