Hello All,
I have a customer with locations in States that allow for "tip credit" in the labor laws. The customer wants to have Aloha calculate the "tip credit" for tipped employees in the labor report. I have not seen any evidence that this is possible. Do any of you have customers that are using "tip credit" at their locations, and have you managed to integrate that practice into Aloha?
Thank you in advance for any help you can give.
Supporting Documentation:
Link
Tipped employees are those who customarily and regularly receive more than $30 per month in tips. Tips are the property of the employee. The employer is prohibited from using an employee’s tips for any reason other than as
a credit against its minimum wage obligation to the employee (“tip credit”) or in furtherance of a valid tip
pool. Only tips actually received by the employee may be counted in determining whether the employee is a tipped employee and in applying the tip credit.
Tip Credit: Section 3(m) of the FLSA permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (which must be at least
$2.13) and the federal minimum wage. Thus, the maximum tip credit that an employer can currently claim under the
FLSA section 3(m) is $5.12 per hour (the minimum wage of $7.25 minus the minimum required cash wage of $2.13). Under certain circumstances, an employer may be able to claim an additional overtime tip credit against its overtime obligations.
I have a customer with locations in States that allow for "tip credit" in the labor laws. The customer wants to have Aloha calculate the "tip credit" for tipped employees in the labor report. I have not seen any evidence that this is possible. Do any of you have customers that are using "tip credit" at their locations, and have you managed to integrate that practice into Aloha?
Thank you in advance for any help you can give.
Supporting Documentation:
Link
Tipped employees are those who customarily and regularly receive more than $30 per month in tips. Tips are the property of the employee. The employer is prohibited from using an employee’s tips for any reason other than as
a credit against its minimum wage obligation to the employee (“tip credit”) or in furtherance of a valid tip
pool. Only tips actually received by the employee may be counted in determining whether the employee is a tipped employee and in applying the tip credit.
Tip Credit: Section 3(m) of the FLSA permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (which must be at least
$2.13) and the federal minimum wage. Thus, the maximum tip credit that an employer can currently claim under the
FLSA section 3(m) is $5.12 per hour (the minimum wage of $7.25 minus the minimum required cash wage of $2.13). Under certain circumstances, an employer may be able to claim an additional overtime tip credit against its overtime obligations.