LC-031 / Labor / Public ledger

Employer tip credits.

Some employers can count tips toward minimum-wage obligations under federal law.

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In ordinary words.

Customers help fund a wage the employer is legally required to ensure.

In legal terms.

Strict conditions apply; employers must make up shortfalls and state laws can be stricter.

Where it stops being legal.

This practice is not categorically legal. Applicable federal, state and local laws, disclosures, procedural protections and the specific facts can make particular conduct unlawful.

Legal authority / Start reading

29 U.S.C. § 203(m)

Open cited reference ↗

General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.

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