By: Chris M. Mason
To kick off Arizona Restaurant Week, below are tips to help Arizona restaurant employers comply with laws involving tipped employees and avoiding costly fines and litigation:
Tip 1: Be Sure Tipped Employees Earn Minimum Wage
Arizona and federal law permits employers to take a “tip credit” towards minimum wage for tipped employees. This credit allows Arizona employers to apply up to $3 in tips earned per hour by an employee towards Arizona’s $11 per hour minimum wage requirement for 2019. So, employers would only need to pay tipped employees $8 per hour to comply with minimum wage requirements.
Tip 2: Be Sure Tipped Employees ACTUALLY Earn $3 per Hour in Tips
If tipped employees earn less than $3 per hour in tips, the employer must make up the difference to comply with the minimum wage requirement.
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