What if your club could take your tips and deduct the small wage paid?
An employer of a tipped employee is required to pay $2.13 per hour in direct wages if the tip amount added to the direct wages equals or exceeds the minimum hourly wage. If the total does not amount to the minimum hourly wage, the employer is responsible for making up the difference.
However, the state allows employers to take a tip credit. This means that though the employer will not technically take away the employee’s tips, they get to count some tips as if the employer had paid them directly to the employee, in order to reach the minimum hourly wage.
So employers can really pay their employees only $2.13 and have their employees’ earnings in tips make up the remaining amount that’s needed to reach the minimum hourly wage, instead of letting them keep the total tip amount.
What is the minimum tipped wage and minimum hourly wage in New Jersey?
http://www.nj.com/data/2018/02/trump...dson_articleIn N.J., the minimum tip wage is $2.31 and the minimum hourly wage is $8.60.



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