What minimum amount in tips must an employee receive in a month to be considered a tipped employee?

What minimum amount in tips must an employee receive in a month to be considered a tipped employee?

• A. $20
• B. $25
• C. $30
• D. $40

Answer: (C)

To determine the classification of an employee as a tipped employee, the Fair Labor Standards Act (FLSA) specifies that an employee must receive at least a minimum amount in tips per month. According to the regulations, the recognized threshold is $30 in tips during a month for an employee to be considered a tipped employee. This classification is significant because it affects how employers can structure wages, including the application of the tip credit for minimum wage purposes. In this context, options that indicate amounts less than $30 do not meet the criteria established by the FLSA, thereby making them insufficient for classification as a tipped employee. The minimum requirement protects employees and ensures that they benefit properly from their tips, which are a crucial part of their total earnings in industries where tipping is common.

To determine the classification of an employee as a tipped employee, the Fair Labor Standards Act (FLSA) specifies that an employee must receive at least a minimum amount in tips per month. According to the regulations, the recognized threshold is $30 in tips during a month for an employee to be considered a tipped employee. This classification is significant because it affects how employers can structure wages, including the application of the tip credit for minimum wage purposes.

In this context, options that indicate amounts less than $30 do not meet the criteria established by the FLSA, thereby making them insufficient for classification as a tipped employee. The minimum requirement protects employees and ensures that they benefit properly from their tips, which are a crucial part of their total earnings in industries where tipping is common.