Tips Only Pay is Illegal
Charles R. Bridgers : September 10, 2012 8:22 am
Some employers hire employees (usually waiters, waitresses and/or exotic dancers) on a tips-only basis. When challenged, they often attempt to label these workers as “independent contractors”. Courts tend to find, however, that the employer was merely trying to fly below the FLSA radar. Employers who take this approach are often found to be liable for the full minimum wage (i.e., no application of the tip credit) overtime pay, liquidated damages and attorneys’ fees and costs.
If you have questions about the Fair Labor Standards Act, call the FLSA experts at DeLong, Caldwell, Bridgers, Fitzpatrick, & Benjamin, LLC, Charles Bridgers and Kevin Fitzpatrick, at (404) 979-3150 for a free consultation.