Some Federal FLSA Requirements for Tipped Employees
Business Law Articles
Rothman Gordon
Pittsburgh, Pennsylvania
This summer, the Tribune Review reported that a Pittsburgh distillery, Wigle Whiskey, was ordered to pay back $38,951 to its workers after an investigation by the U.S. Department of Labor (DOL) revealed that the company violated the Fair Labor Standards Act of 1938 (FLSA). The DOL stated that Wigle Whiskey violated the FLSA when it required its servers to share tips with their managers and supervisors and by not paying a suitable overtime pay rate to its tipped employees.
Compensation rules covering tipped employees are complex. Both the Pennsylvania Minimum Wage Act (PMWA) and the federal Fair Labor Standards Act (FLSA) apply. When an employee is subject to both federal and state wage laws, the law that provides the employee with greater benefits prevails.
This brief article summarizes some aspects of the federal Fair Labor Standards Act rules for tipped employees. Pennsylvania adopted new rules in this area effective August 5, 2022. The Pennsylvania rules will be the subject of a future article.