{"id":5603,"date":"2011-07-15T17:10:50","date_gmt":"2011-07-15T21:10:50","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=5603"},"modified":"2011-07-15T17:10:50","modified_gmt":"2011-07-15T21:10:50","slug":"question-of-the-week-what-is-the-impact-of-not-providing-a-tip-credit-notice","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2011\/07\/question-of-the-week-what-is-the-impact-of-not-providing-a-tip-credit-notice\/","title":{"rendered":"Question of the Week: What Is the Impact of Not Providing a Tip Credit Notice?"},"content":{"rendered":"<p><a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/07\/20110715.jpg\"><\/a><div class=\"img alignright size-medium wp-image-5604\" style=\"width:200px;\">\r\n\t<a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/07\/20110715.jpg\"><img src=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/07\/20110715-200x300.jpg\" alt=\"What is the Impact of Not Providing a Tip Credit Notice?\" width=\"200\" height=\"300\" \/><\/a>\r\n\t<div>What Is the Impact of Not Providing a Tip Credit Notice?<\/div>\r\n<\/div>This week\u2019s question comes from Tony, a restaurant owner. I read that restaurants should obtain a signed tip credit notice from all tipped employees. What is the impact of not providing a tip credit notice? Answer: Employers who do not provide a tip credit notice are not allowed to take the tip credit.<\/p>\n<p><strong>Minimum Wage for Tipped Employees May Be Lower<\/strong><\/p>\n<p>Current federal law requires most workers be paid a minimum wage of $7.25 per hour when an employee works forty hours or less in a week. For tipped employees, the minimum cash wage is $2.63 per hour as long as the employee receives enough tips to bring the hourly wage up to at least $7.25 per hour. Some states may have higher minimum wage rates that must be followed in that state. See our <a href=\"https:\/\/old.visionpayroll.com\/kb\/tutorials\/minimum-wage-chart\/\" target=\"_blank\">Minimum Wage Chart<\/a> for further information.<\/p>\n<p><strong>Under FLSA, Notice Is Required to Take a Tip Credit<\/strong><\/p>\n<p>Under \u00a73(m) of the <a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/07\/FLSA.pdf\" target=\"_blank\">Fair Labor Standards Act (FLSA)<\/a>, a tip credit is not allowed, \u201cwith respect to any tipped employee unless such employee has been informed by the employer of the provisions of [the tip credit].\u201d<\/p>\n<p><strong>Employers Must Pay Full Minimum Wage<\/strong><\/p>\n<p>Employers who do not provide a tip notice and therefore are not allowed a tip credit must pay the full hourly minimum wage of $7.25 per hour the state minimum wage if it is higher than $7.25 per hour.<\/p>\n<p><strong>Contact Vision Payroll Today<\/strong><\/p>\n<p>Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> today if you have further questions on the tip credit notice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is the Impact of Not Providing a Tip Credit Notice? This week\u2019s question comes from Tony, a restaurant owner. I read that restaurants should obtain a signed tip credit notice from all tipped employees. What is the impact of not providing a tip credit notice? Answer: Employers who do not provide a tip credit [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[82,47,76,44,992,1576,984],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/5603"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=5603"}],"version-history":[{"count":3,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/5603\/revisions"}],"predecessor-version":[{"id":5608,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/5603\/revisions\/5608"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=5603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=5603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=5603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}