An employer can credit up to $5.12 of a tipped employee's minimum wage as coming from the tips received by that employee.

Question

Quizplus · Accepted Answer

This is known as the tip credit, and it allows employers to pay tipped employees less than the standard minimum wage as long as the employee's tips bring their total earnings up to at least the minimum wage. The exact amount of the tip credit varies by state and may change over time.

An Employer Can Credit Up to $5