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Tip credits and pay stubs: making sure the math on your paycheck is right

Tipped jobs run on a different wage formula than most first jobs. Knowing the mechanism, not just the final number, is what lets you catch an error.

Par John Stavropoulos

Co-Founder and Vice President of KidsKnowRights6 min de lecture

En attente de relecture par un professionnel du droit

Sujets:tip creditpay stubminimum wageteen work

Cet article donne des informations éducatives générales, pas un conseil juridique personnalisé. KidsKnowRights n'est pas un cabinet d'avocats, et lire cet article ne crée pas de relation avocat-client. Les lois varient selon l'État, l'âge et les circonstances, et elles changent avec le temps. Pour un conseil sur une situation réelle, adresse-toi à un avocat agréé ou à un organisme d'aide juridique.

Le texte complet de cette page n'a pas encore été traduit, il est donc affiché en anglais ci-dessous. Le résumé, les libellés et les informations de sécurité ci-dessus sont traduits.

A tipped job — serving, bartending, some delivery and salon work — is often a young person's first paycheck, and it runs on a different formula than an hourly job that pays a flat rate. Understanding the mechanism behind a tipped paycheck, not just trusting the final number, is what actually lets you catch a mistake, whether it's yours or your employer's.

How a tip credit actually works

Under federal law, an employer of a tipped worker may pay a direct cash wage lower than the standard minimum wage, and count a portion of the tips the worker actually receives toward the difference — this is called a tip credit. The employer is required to make up the gap with additional pay in any week where a worker's direct wage plus tips doesn't add up to at least the full minimum wage. The exact dollar figures for the direct wage and the maximum tip credit change over time and vary by state, so the specific numbers are worth checking directly with the U.S. Department of Labor or your state labor agency rather than relying on a number you heard secondhand.

Several states do not allow a tip credit at all, and require tipped workers to be paid the full state minimum wage in direct cash wages regardless of tips — which is why the same job can work very differently across a state line.

The tips are always yours

Regardless of whether an employer takes a tip credit, federal law prohibits an employer from keeping any portion of a worker's tips for itself, for any reason. A valid tip pool that shares tips among employees who customarily receive them — servers sharing with bussers, for example — is allowed under specific rules, but a manager or owner taking a cut of tips generally is not, and a tip pool that includes people who don't normally receive tips (like kitchen management, depending on the exact rules in place) can also be improper.

If tips are pooled at your job, it's reasonable to ask exactly how the pool is split and among which positions — a vague answer is a sign to look closer, not a reason to drop the question.

Reading your own pay stub

Important

A pay stub worth trusting should show your direct cash wage rate, hours worked, any tip credit claimed, and reported tips separately — not just a single lump total. If any of those pieces are missing, combined confusingly, or don't match your own notes on hours and tips, that is specific and worth raising, calmly and in writing, before assuming it's a one-time mistake that will fix itself.

Before a tip credit can apply to your pay at all, your employer is required to have told you the direct wage, the amount claimed as tip credit, and that you keep all your tips except for a valid pool — if you were never told any of this, that notice requirement itself may not have been met.

À retenir

  • A tip credit lets an employer pay a lower direct wage, but tips plus wages must always add up to at least full minimum wage.
  • Some states don't allow a tip credit at all — the same job can pay very differently depending on the state.
  • Your employer can never keep your tips; a valid tip pool has specific rules about who can share in it.
  • Your employer must tell you the direct wage, the tip credit claimed, and that you keep your tips — before that notice, a tip credit shouldn't apply.

Sources

Cet article donne des informations éducatives générales, pas un conseil juridique personnalisé. KidsKnowRights n'est pas un cabinet d'avocats, et lire cet article ne crée pas de relation avocat-client. Les lois varient selon l'État, l'âge et les circonstances, et elles changent avec le temps. Pour un conseil sur une situation réelle, adresse-toi à un avocat agréé ou à un organisme d'aide juridique.