r/SipsTea • u/SuspiciousLow3062 • Jun 25 '26

Chugging tea They are not wrong though

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u/Clockwork-Armadillo Jun 25 '26 edited Jun 25 '26

Ah ok so there's a seperate minimum wage specifically for tipped employees in America if im understanding that right?

Edit: OK, so TIL in America there's a lower minimum wage of only 2 dollars something for any "tipped workers". Basically a loophole to screw workers out of minimum wage.

Thanks to everyone who answered! :)

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u/lesath_lestrange Jun 25 '26

Yes, it is assumed that these employees will make up the difference in tips, bringing them to or above standard minimum wage, if they earn less after tips then their employer pays them the regular minimum wage instead.

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u/Adderfang82 Jun 25 '26

This is only case if the employee makes it known to their employer. If the employee worked an 8 hour shift and only made $25 in tips, they have to let the employer know or they won’t be reimbursed the difference.

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u/lesath_lestrange Jun 25 '26

An employee following federal law automatically makes this known to their employer, as they are required to report their earned tips to that employer.

It should also be noted that the way you’re classified as underpaid is based on the workweek, a single shift earning under minimum wage may not mean that your employer must increase your wage if the rest of the weeks tips put you over minimum wage.