Getting Tippy: Calculating Overtime For Employees Who Perform Tip-Credit And Non-Tip-Credit Positions
By EsqSocial Corporation 20/01/21
This week, the U.S. Department of Labor issued an opinion letter, FLSA021-5, explaining how to calculate an employee’s regular rate of pay and overtime when an employee performs both tip-credit and flat-rate work in a workweek. The regular rate is a weighted average of all pay rates for all hours worked. The only tips that are included in the calculation are the tips claimed as part of a tip-credit. Non-discretionary service charges or automatic gratuities, such as those assessed on large...
By: Sherman & Howard L.L.C.