If a worker is one who receives tips from customers, the employer is allowed to reduce the minimum wage paid to that worker by up to _____ percent, with the difference to be made up by tips received.

Question

If a worker is one who receives tips from customers, the employer is allowed to reduce the minimum  wage paid to that worker by up to _____ percent, with the difference to be made up by tips received.

Quizplus · Accepted Answer

The Fair Labor Standards Act allows employers to pay tipped employees a lower direct wage, provided that the tips received make up the difference to reach the federal minimum wage. The maximum tip credit is 40% of the minimum wage.

If a Worker Is One Who Receives Tips from Customers