Webinar Recap - Tips on Tipping: Part I

Posted By: Susie Leggett Tax + Accounting, Wage & Hour, Restaurant Industry News, Restaurant Operations,
Webinar Recap: Tips on Tipping: Part I

If you employ tipped workers, then this webinar is for you. Les A. Schneider and J. Larry Stine of Wimberly, Lawson, Steckel, Schneider, & Stine P.C. share their expertise on wage and hour regulations, tip credit rules in Tips on Tipping: Part I

Cautionary Tales: Larry & Les shared recent lawsuits against restaurant employers reaching settlements of hundreds, even millions of dollars for failure to comply with the Fair Labor Standards Act (FLSA). It is important to understand tipping requirements and practice transparency with your employees to avoid potentially costly legal proceedings.

Back to Basics: Federal minimum wage is $7.25/hr and the tip credit minimum wage is $2.13/hr. Tips received must bring your employees hourly rate to at least $7.25/hr - if not, you are required to provide supplemental pay.

Service Charges v. Tips: While tips always belong to your employee, service charges belong to your restaurant. It is permissible to collect a percentage service charge in lieu of tips, but you must pay all participating workers at least $7.25/hr.

Make a Splash with Tip Pooling: Tip pools are a popular way to distribute gratuity among your staff. However, salaried owners and managers cannot participate in a tip pool; unless they do not claim tip credit, back-of-house employees receiving an hourly wage or salary must also be excluded from tip pools.

What if an employee is hired for both non-tipped and tipped work? Do the same rules apply to gratuity for online orders? For the answer to these questions and more, click below to watch the full recording of the presentation.

Watch the Recording.

Still have questions? Register for Tips on Tipping: Part II and we will address your comments in the next presentation.

This information is provided for educational purposes only. Please consult your trusted legal and financial representation for advice. Any questions regarding this webinar can be directed to:

Les A. Schneider & J. Larry Stine

Wimberly, Lawson, Steckel, Schneider & Stine, P.C.

Lenox Towers – Suite 400
3400 Peachtree Road, N.E. Atlanta, Georgia 30326