Paid through tips only? Your employer likely owes you a lot more.

Although the FLSA has required employers to pay employees minimum wage and overtime for nearly eighty years, employers are still violating its core requirements today. A common violation occurs when an employer requires its tipped workers to work only for the tips they receive from customers. This violates the law.

If a tipped worker is paid through tips only, the worker is likely entitled to (1) minimum wage ($7.25 per hour in Texas) for all hours worked in a week under forty and (2) time and one-half ($10.88 per hour) for any hours worked over forty in a week. And employers are subject to double (“liquidated”) damages for violations of the FLSA. This can add up fast.

Consider this example: A bartender works for tips only for an employer for a year. He works 45 hours per week for 52 weeks in the year. If she were to bring a FLSA lawsuit against her employer, here is how the court would calculate her damages:

Per week Damages:

$7.25 per hour X 40 hours = $290.00

+

$10.88 per hour X 5 hours = $54.40

=

$344.40 per week in lost wages

Damages for the entire year:

$344.40 X 52 = $17,908.80 in lost wages for the year.

The server has lost wages of $344.40 per week. Multiplied by the 52 weeks she worked, she has lost wages of $17,908.80. And when those damages are doubledunder the FLSA, the server could be in line to receive $35,817.60 in damages through the lawsuit.

If you or a loved one works for tips only, you may be entitled to lost wages like those described above from your employer. For a free consultation, contact us online or call 512-782-0567.