What is the federal minimum tip wage per hour?

What is the federal minimum tip wage per hour?

• A. $2.13
• B. $3.00
• C. $2.50
• D. $5.00

Answer: (A)

The federal minimum tip wage per hour is indeed $2.13. This wage applies to employers who meet certain criteria, allowing them to pay tipped employees a lower minimum cash wage, provided that the employees' combined wages and tips equal at least the federal minimum wage of $7.25 per hour. The $2.13 minimum tip wage has been in place since 1991 and reflects the understanding that tips will supplement this base wage. Tipped employees, such as restaurant servers and bartenders, typically earn much more than this minimum through customized service and tipping practices, but the federal law ensures that they are also protected by a minimum amount of pay if their tips do not bring their earnings up to the standard federal minimum wage.

The federal minimum tip wage per hour is indeed $2.13. This wage applies to employers who meet certain criteria, allowing them to pay tipped employees a lower minimum cash wage, provided that the employees' combined wages and tips equal at least the federal minimum wage of $7.25 per hour. The $2.13 minimum tip wage has been in place since 1991 and reflects the understanding that tips will supplement this base wage. Tipped employees, such as restaurant servers and bartenders, typically earn much more than this minimum through customized service and tipping practices, but the federal law ensures that they are also protected by a minimum amount of pay if their tips do not bring their earnings up to the standard federal minimum wage.