Running a restaurant successfully requires more than just having great food; it’s also about having great staff and following the law. Minimum wage laws require that you pay your employees at a certain level, but even that can vary depending on whether an employee receives tips or not. Here’s what you need to know when you set pay rates for your employees.
Knowing the Laws
First and foremost, when paying your employees, you have to make sure you follow the law. Federal law requires that all workers earn a minimum wage in each state. But don’t tipped employees have a different rate? Yes and no. In most states, employees who receive tips can be paid a lower wage of $2.13 per hour, but their tips must be enough to make their total compensation meet the minimum wage, which is $7.25 per hour (the federal minimum) in a number of states. If it’s a slow night, it’s up to the boss to make up the difference.
To keep reading, click here: Minimum Wage: Basics You Should Know