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Tipped employee" means an employee who customarily and regularly receives more than $30 a month in tips.
Tip offset.
Tip offset is the amount of money by which an employer, in meeting the legal minimum wage standard, may reduce a tipped employee's wage in consideration of the receipt of tips. The Small Business Job Protection Act of 1996 requires a fixed dollar tip offset. A minimum cash amount of $2.13 per hour should be paid to tipped employees. If tips actually received are not sufficient, when added to $2.13, to total the minimum wage of $4.75 (as of October 1, 1996) or $5.15 (as of September 1, 1997), the employer must also pay the additional difference to the tipped employee.
Starbucks, Wendy's and the other tip jars that pop up all over the place can bite me. Their base wage is triple that of any US server.
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