Employees in the service industry, such as bartenders and waitstaff, have come to rely on tips as a part of their hourly wages. In fact, most states specifically allow restaurants and bars to pay workers less than minimum wage, anticipating that they will be able to supplement their wages with tips earned – this is referred to as the “tip credit.” If employers elect to use the tip credit provision, they must comply by federal and state laws.

Interested in learning more? Download our handout today to gain insight into various Do’s and Don’ts of the Department of Labor’s new tip credit rule.