Federal Law FLSA Tips Law Employee Dual Jobs Duties

Under the Fair Labor Standards Act (FLSA) tipped employees are those who customarily and regularly receive more than $30 per month in tips. How do employers calculate tips for workers and employees with dual job duties.

Free legal advice. Call now: 800-484-4610

We invite your attention to our disclaimer.

When an employee is employed by one employer in both a tipped and a non-tipped occupation, such as an employee employed both as a maintenance person and a waitperson, the tip credit is available only for the hours spent by the employee in the tipped occupation.

The FLSA permits an employer to take the tip credit for some time that the tipped employee spends in duties related to the tipped occupation, even though such duties are not by themselves directed toward producing tips.

For example, a waitperson who spends some time cleaning and setting tables, making coffee, and occasionally washing dishes or glasses is considered to be engaged in a tipped occupation even though these duties are not tip producing.

However, where a tipped employee spends a substantial amount of time (in excess of 20 percent in the workweek) performing related duties, no tip credit may be taken for the time spent in such duties.