Malcolm R
Senior HTF Member
- Joined
- Feb 8, 2002
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- Malcolm
Depends on the establishment, but no, they may not be.
Our state minimum wage just increased here in Vermont as of today. Here's the current structure for minimum wage and for tipped employees:
MINIMUM WAGE, effective 01/01/2004: $6.75 per hour worked
MINIMUM WAGE, effective 01/01/2005: $7.00 per hour worked
Employers engaged in the hotel, motel, tourist place and restaurant industry shall receive a tip credit for tips actually earned and retained by *service or tipped employees. For service and tipped employees the basic wage rate will be:
Minimum Base Rate Maximum Tip Credit Allowed
Rate, eff. 1/1/2004: $3.58/hr. $3.17/hr.
Rate, eff. 1/1/2005: $3.65/hr. $3.35/hr.
*Service or Tipped Employees – is defined as "All those, in either hotels, motels, tourist places, and restaurants who customarily and regularly receives more than $30.00 per month in tips for direct and personal customer service."
So yes, base pay for tipped service employees can be substantially below minimum wage, with their tip income expected to make up the difference.