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Require Employers to Pay Minimum Wage to Employees Who Receive Tips

Created by L.S. on February 04, 2013

Require full payment of the federal minimum wage to be covered entirely by the employers of tipped employees.

An employer of a tipped employee shall be required to pay the Federal Minimum Wage ($7.25) in direct wages. The employee retains all tips as taxable income.

In states that have specific laws regarding tipped employees, all employees shall receive the minimum wage of that state from the employer. Employees shall be entitled to all tips as taxable income.

This will shift the burden of minimum wage payment from customers to employers. With the added benefit of ensuring that tipped workers can maintain a minimum standard of living, and consistent monthly budget, even during times of fluctuating business.

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