Tips can be a big part of an individual’s income, particularly if they are employed in a restaurant or other business in the hospitality industry. But, unfortunately, sometimes employers take advantage of employees who rely on tips. They might forgo minimum wage requirements or not be clear with employees about pay.
Remember, the minimum wage in Ohio was raised for 2020. Since January 1, 2020, Ohio minimum wage is $8.70 an hour for non-tipped employees and $4.35 an hour for tipped employees.
If you believe your pay has not met minimum wage requirements or believe you are owed overtime pay, contact a Columbus wage and hour attorneys to discuss your situation.
How Tipped Employees Are Paid
According to the federal Fair Labor Standards Act (FLSA) there is a minimum wage requirement for employees. There is a deviation in the standard amount set for tipped employees.
A tipped employee is someone who receives an amount in tips that, when combined with the reduced minimum wage from the employer, will match or surpass the set minimum wage for employees who are not tipped. Tipped employees are often individuals who work in service industries, such as restaurants, where their tips are connected to their performance on the job.
Ohio law states a tipped employee is to be paid 50% of the minimum wage. So, because the standard minimum wage in Ohio is $8.70, a tipped employee receives a minimum wage of $4.35.
Of course, it is to the employers advantage to pay less. So for an employer to be able to do this, there are considerations that have to be in place. A couple of these include that an employee must receive at least $30 in tips each month and that the tips must be retained by the employee.
Overtime Pay for Tipped Employees in Ohio
When a tipped employee is working overtime, meaning over 40 hours within a one week period, the employee is eligible for overtime pay. Hours worked overtime are to be compensated at 1.5 times an employee’s normal rate of pay. But for a tipped employee, the overtime rate for overtime hours is connected to the standard minimum wage, not the reduced amount for tipped work.
If you work at an Ohio business as a tipped employee and are concerned that your pay is not correct, contact a Columbus wage and hour attorneys to discuss your situation. There are plenty of ways that wages can be incorrect including when tipped employees are not paid the correct amount for overtime, when tips are not tracked properly, and when there is no accounting procedure in place.
Do you think your pay has been incorrect? It is time for you to speak with a Columbus employment lawyer. The lawyers at Coffman Legal LLC are strong and committed advocates for all Ohio workers. Contact experienced Columbus wage and hour attorneys today to further discuss your employment claim. They can guide you through the process of securing the compensation you deserve. Call 614-949-1181 for a free and confidential consultation.