Tip Pool Violations – Overtime Wages for Servers

Overtime Wages for Servers

Federal law requires employers to pay servers overtime wages – calculated at one and a half (1 1/2) times their “regular rate of pay.”

A common mistake made by many restaurants and bars is to pay an overtime rate of $3.19 per hour ($2.13 x 1.5). This is wrong. Federal law provides that the correct overtime rate for servers (making $2.13/hour) is calculated as follows:

– Applicable Minimum Wage = $7.25

– Multiply $7.25 by Time and a Half = $10.88

– Subtract the Maximum Tip Credit of $5.12 = $5.76

If your employer fails to pay you appropriate overtime wages, please call 877.TIP.POOL (877.847.7665) today for a free/confidential consult or submit a confidential claim form.

For more information about overtime wages, please click here