What is the core function of the 'tip credit' under the FLSA framework?

Answer

It allows an employer to pay a tipped employee less than the standard federal minimum wage if tips cover the difference.

The tip credit is a mechanism where an employer can pay less than the full federal minimum wage, contingent upon the employee's tips amounting to at least the full minimum wage.

What is the core function of the 'tip credit' under the FLSA framework?

#Videos

Shocking Tipping Rules in the USA! Insider Secrets ... - YouTube

TıpcareerEarningwagehospitality