![]() ![]() 5 The “80/20 rule” concerning this situation was established in the U.S. 3 While the difference between these tipped employee minimums and the $11.00 state minimum wage can be satisfied by gratuities, 4 for restaurants to employ the Connecticut tip credit in practice has proved complex, controversial and sometimes extremely costly.įederal regulations recognize that an employee in a tipped occupation may perform some untipped work, such as a server who spends part of the time cleaning and setting tables, toasting bread, making coffee and occasionally washing dishes or glasses, without causing the employer to lose the tip credit. 2 Bartenders must be paid at least $8.23 per hour. Under the state’s tip credit rules, employees in the hotel and restaurant industries (other than bartenders) who “customarily and regularly receive gratuities” can be paid $6.38 per hour in direct wages. Under the federal Fair Labor Standards Act (FLSA), restaurants can generally pay servers who receive tips a reduced minimum wage of $2.13 per hour if that amount, combined with $5.12 in gratuities 1 that a server receives, equals the federal minimum wage of $7.25 per hour (the “tip credit” rule).Ĭonnecticut’s state minimum wage is currently $11 per hour. It also restricts the right of employees to bring future class actions against restaurants for alleged violation of wage rules.īackground on State and Federal Regulation of Tip Credits and “80/20 Rule” The new law, Public Act 19-1, directs the state’s Labor Commissioner to adopt regulations codifying the so-called “80/20 rule” and to conduct random wage and hour audits of restaurants to ensure wage and hour compliance. Littler Investigation Toolkit for Employersįollowing months of political maneuvering, including a gubernatorial veto, Connecticut has enacted compromise legislation that attempts to clarify how restaurants and other hospitality industry employers must pay workers who receive tips in customer service jobs that also require untipped work.We’re ready for your tomorrow – because we’re built for it. ![]() Global Workplace Transformation Initiative.Littler Restructuring Assessment Solution.General Data Protection Regulation (GDPR). ![]()
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