Nevada Tipped Minimum Wage
Posted by Tamara
The federal minimum wage for tipped workers is currently $2.13 per hour. However, Nevada minimum wage law requires that tipped employees be paid the state minimum wage. That’s currently $5.30 per hour for employees with a qualified health insurance plan, and $6.85 per hour for all other employees, according to the US Department of Labor.
Federal law allows employers to pay workers a wage that is lower than the federal minimum for non-tipped employees, as long as the worker earns tips totaling $30 or more per month. Otherwise, the company must make up the difference to insure the worker is earning an amount equivalent to the regular minimum wage.
The federal minimum wage is regulated by the federal FLSA (Fair Labor Standards Act of 1938), and the U. S. Department of Labor has set up guidelines regarding minimum wage. For information on that subject, here’s a link.
Tipped workers are entitled to keep all of the tips they earn in Nevada and in several other states. If an establishment has a tip pooling policy in place, then servers may share their tips among other workers such as bus persons, bartenders or bellhops.
In one of these tip pooling policies, the server usually shares a pre-set percentage of his or her tips with the bus person and/or the bartender. Percentages usually run around 10% for the bus person, and up to 25% for the bartender. If a server decides not to share, and a tip pooling plan is in place, he or she could find a long wait at the bar for drinks, and or a long wait for her tables to be cleared. Obviously, the server would earn fewer tips this way.
Agreements where salaried managers take a share of the tips is not considered valid by most laws. If that manager, however, fills in for a bartender or a bus person, he or she might be eligible to receiver a portion of the tips. The federal law is vague on this topic.
Automatic charges, such as tips and service charges added to large parties or banquets do not count as tips. Instead, federal law classifies them as income for the employer. The employer must pay taxes on this revenue, and can share with the employees or not, as he or she chooses.
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