Empowering Servers: Understanding the Importance of Proper Tip Credit Notice (Part 2)

Did Your Employer Provide You Proper Tip Credit Notice?

In this second installment of our Empowering Servers Series, we delve deeper into the importance of proper tip credit notice.

Understanding the law is the first step in protecting your rights as a server or bartender, and Herrmann Law is here to help you navigate these complexities.

What is the Tip Credit?

The Fair Labor Standards Act (FLSA) allows employers to pay tipped employees—servers and bartenders—less than the full minimum wage.

This is known as a ‘tip credit’. However, for employers to legally claim this credit, there are certain requirements they must comply with under federal law, including providing servers and bartenders with ‘proper notice’ of the tip credit.

What is Proper Tip Credit Notice?

The FLSA requires employers to provide clear and comprehensive notice to their employees about the tip credit before they can legally apply it.

The notice must include information about the amount of the cash wage the employer is paying a tipped employee, the additional amount claimed by the employer as a tip credit, and the fact that all tips received by the employee must be retained by the employee except for pooling arrangements with other tipped staff.

Importance of Proper Tip Credit Notice

Proper Tip Credit notice puts the employee on notice of their rights and the employer’s obligations with regard to the tip credit and payment of wages under federal law. Lack of proper tip credit notice can be a significant violation of your rights as a server or bartender.

When proper notice is not provided, the employer will lose the right to claim the tip credit. This means if your employer failed to inform you and

 provide proper notice of the tip credit, then your employer has lost its right to pay you the subminimum tipped wage. In other words, you are entitled to an award of back pay for the full minimum wage for each hour worked. 

Knowing your rights can help you recognize when they are being violated and take necessary action.

What If My Employer Failed to Give Me Tip Credit Notice or Violated the Tip Credit?

If you believe that your employer has not provided proper notice and is incorrectly claiming a tip credit, you should reach out to an experienced wage and hour attorney. At Herrmann Law, we specialize in protecting employees’ rights and can guide you through the process of seeking justice and securing the wages you are entitled to.

Take Action: Contact the Employment Attorneys at Herrmann Law

Don’t let your hard-earned tips be mishandled due to employer misconduct. If you are a server or bartender who suspects your tip credit rights are being violated, reach out to the Employee Rights attorneys at Herrmann Law today. Call us at (817) 479-9229 or submit your information to us online.

We’re more than a law firm – we are advocates empowering servers and bartenders across the country. If you believe your rights have been violated, we at Herrmann Law are ready to fight for your cause.

Stay tuned for Part 3 of our series, where we will focus on several unlawful expenses and deductions servers and bartenders are commonly, albeit illegally, required to pay for in connection with their work.