Know Your Rights

Federal and state wage laws can be complicated. That’s why your first step should be to contact a law firm, and we are here to help.

Common wage law violations include failure to pay for all time worked; failure to pay overtime at the correct hourly rate; failure to pay overtime at all; and failure to pay a proper salary.

Employers often take what’s called the “tip credit” under the FLSA and applicable state law to pay their tipped employees at a sub-minimum hourly rate. However, to do so, employers must meet several requirements, including: (1) properly notifying employees that they are taking the tip credit; (2) ensuring that the employee’s tips are not shared with employees who are not eligible to receive tips; and (3) not using the tipped hourly rate to pay employees for spending worktime on significant non-tip producing work.

Employers can make deductions under specific circumstances, but they must ensure that these deductions do not reduce your earnings below the minimum wage. Certain deductions for items like uniforms or equipment may not be permitted. It’s crucial to check both federal and state guidelines to determine what is allowed, as violations can lead to wage theft claims.

Yes, it can be.  However, tips may only be shared with employees who are eligible to receive tips.  Employees who are paid tips must interact with customers.  For example, tips earned by servers and bartenders cannot be used to pay “back of house” employees, like cooks, dishwashers, and others who do not interact with customers.

Also, employers cannot use tips to pay their managers, nor can employers keep a portion of their tips themselves.  Such practices are strictly prohibited.

First, you should talk with a lawyer.  That’s why we are here.  We are experts at building cases to recover wages, tips, and other compensation.  You should know that you do not have to have documentation to prove wage violations.  We are often able to prove wage violations through testimony and circumstantial evidence.  Moreover, the law places the burden on the employer, not the employee, to maintain employment records including records of time worked, wages paid, and tips earned and shared. 

It is illegal for employers to retaliate against employees for filing complaints regarding wage or tip theft. Federal law protects you from being fired, demoted, or discriminated against for asserting your rights. However, you should be cautious and document any negative changes to your employment status following your complaint, as retaliation claims can be complex.