The difference between the tipped employee minimum wage and the Federal minimum wage is called the ___________________________________.
A) Tip allowance.
B) Wage credit.
C) Tip credit.
D) Wage allowance.

Question

Quizplus · Accepted Answer

The difference between the tipped employee minimum wage and the Federal minimum wage is called the tip credit. This means that employers can pay employees who regularly receive tips a lower hourly wage. The tip credit is the amount of money that the employer can take from the employee's tips to make up the difference between the tipped minimum wage and the Federal minimum wage.

The Difference Between the Tipped Employee Minimum Wage and the Federal