If you’ve ever started a new job in a restaurant or bar, you probably went through a training period before taking tables or serving drinks on your own. But what if your employer didn’t pay you for that time, or paid you the tipped minimum wage instead of the full minimum wage?
Under federal labor law, that’s usually not legal. During training, restaurants and bars must pay servers and bartenders the full minimum wage, not the reduced tipped rate. Here’s what you need to know about how training pay works for tipped workers and what to do if your employer isn’t following the law.
What the FLSA Says About Tipped Employees
The Fair Labor Standards Act (FLSA) allows employers to take a tip credit toward the minimum wage for employees who regularly receive more than $30 per month in tips. This means an employer can pay less than the standard minimum wage as low as $2.13 per hour under federal law if tips make up the difference to reach the federal minimum wage of $7.25 per hour.
During training, you are not yet performing tip-producing duties. The FLSA’s tip credit applies only when an employee is engaged in work that allows them to earn tips.
If your tasks do not involve directly serving customers or earning gratuities, your employer cannot legally apply the tip credit.
That means:
- The tip credit does not apply to training time
- You must receive the full minimum wage for every training hour
- You must also earn overtime, which is 1.5x the full minimum wage for every hour worked over 40 hrs per week
- Employers must include that pay on your paycheck
What to Do If You Were Paid the Tipped Rate During Training
If your employer paid you the tipped rate instead of the full minimum wage for training, take these steps:
- Review your pay stubs and schedules to identify your training period and rate of pay.
- Document the hours you spent in training or orientation.
- Contact our Wage and Hour Attorneys who will evaluate your situation and offer guidance on the next steps.
You may be entitled to back pay, liquidated damages, and attorney’s fees if your employer violated the FLSA.
Know Your Rights as a Server or Bartender
Training is work. Whether you’re learning the menu, practicing drink recipes, or shadowing a coworker, your time must be paid fairly.
If your employer paid you the tipped rate or failed to pay you for training, you may be entitled to recover unpaid wages and penalties under federal or state law.
Our employment law firm helps servers and bartenders nationwide recover unpaid training pay and other wage violations. Contact us today for a free consultation to learn your rights under the FLSA.