A tipped employee may receive less than minimum wage if they earn over $30 in tips during the month.

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This is known as the tip credit provision under the Fair Labor Standards Act (FLSA). It allows employers to pay tipped employees a lower hourly wage, as long as their tips bring their total earnings up to at least minimum wage. The current federal minimum wage for tipped employees is $2.13 per hour, but if their tips do not bring them up to the regular minimum wage of $7.25 per hour, the employer is responsible for making up the difference. However, if the employee's tips do bring them above $7.25 per hour, the employer is allowed to take a tip credit and pay them the lower hourly rate.

A Tipped Employee May Receive Less Than Minimum Wage If