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 known as the tip credit. Tipped employees, such as servers or bartenders, are subject to a lower minimum wage than non-tipped employees due to the expectation that they will earn tips to supplement their income. The tip credit allows employers to pay a lower minimum wage to tipped employees, with the assumption that the employee will earn enough in tips to bring their total compensation up to or above the federal minimum wage.

The Difference Between the Tipped Employee Minimum Wage and the Federal