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Does my employer have to pay me overtime if my pay is based on tips?

Yes, your employer must pay you overtime for all hours worked over 40 in a single work week if your pay is based on tips. According to the Fair Labor Standards Act (FLSA), the amount of overtime pay is almost always 1.5 times the hourly rate of pay.  In the case of tipped employees, the rate is determined by averaging out the hourly rate for the employee based upon total earnings, that is, any hourly rate plus tips divided by hours worked.

In addition, if an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage ($5.15 an hour) the employer must make up the difference.

There have been many successful lawsuits filed for tipped employees who are not compensated for overtime by their employer.  If you receive tips as part or as total compensation for your job and work more than 40 hours a week, you may be eligible to file a tipped employee overtime lawsuit.  Our experienced and qualified legal team with provide you with a free consultation on your claim and if we accept your case, we will not charge any legal fees or costs unless we are successful in winning you a settlement.  Call us today at (855) 754-2795 to discuss your case.

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