Of the $5.8 billion nationally in tips per year they estimate would be shifted from workers to employers, $4.6 billion - nearly 80 percent - would be pulled from the pockets of women working tipped
jobs, the report says.
Again, participation in a true tip pool is supposed to be only tipped
employees, meaning those who receive the tips directly from the customer.
Given the documented tendency for tipped
workers to hide income, the least reliable evidence regarding income levels is likely to come from employee reports to the government, with more reliable evidence coming from anonymous employee reports to private individuals or organizations, and the most reliable evidence coming from employers.
Question: Are the requirements for rest and meal periods different for tipped
rates are determined by the IRS under the "McQuatter's" formula and historical data relative to tips for an establishment's employees.
In some cases, customers appeared to have forgotten the exact amount of their bills and how much they had tipped
and so could provide only estimates.
But the meaning of tip wage often gets lost in political rhetoric, and because of some who ignore stated fact, confusion reigns over wage fairness for tipped
employees in Oregon.
The FLSA permits employers to pay a tipped
employee cash wages of $2.13 per hour, provided the employee's gross compensation (tips plus cash wages) equals at least the minimum wage.
Rather, the language merely provides that tips are considered wages received by the employee and paid by the employer; it neither grants nor denies the IRS power to assess employer-only FICA taxes without first assessing the FICA tax liability of each tipped
3121(q) and the legislative history cited by both parties show that Congress intended to level the contributions to FICA between tipped
employees and their employers.
If the aggregate amount of tips reported for any payroll period or calendar year is less than 8%, employers who qualify as large establishments must allocate the difference among tipped
employees on either a "good faith" agreement, or on the allocation methods prescribed in Sec.
The restaurant must develop a procedure for tracking the reporting of charge-card tips by both directly and indirectly tipped
employees; it also agrees to establish a procedure to ensure that cash tips are reported by all employees.