Here’s a tip: Know law on paying employees who work for tips — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Here’s a tip: Know law on paying employees who work for tips

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in Compensation and Benefits,Human Resources

Hundreds of thousands of Floridians rely on tips for part of their incomes. To stay on the right side of wage-and-hour laws, their employers need to understand the somewhat tricky interplay of tip income and the minimum wage.

Florida’s minimum wage law follows the federal Fair Labor Standards Act in many respects, but there are some key differences. Foremost, Florida’s minimum wage is $6.79 per hour, higher than both the current $5.85 federal wage and the $6.55 rate that takes effect July 24.

Another key difference involves the credit employers must take for tipped employees. Federal law requires employers to pay employees who receive tips at least $2.13 per hour, and make up the difference between the direct hourly wage and the federal minimum ($3.72) as a tip credit.

Florida approaches things differently. The state’s $3.02 tip credit remains constant regardless of the state minimum wage. So this year, Florida em...(register to read more)

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