FLSA Turns 80: The Tip Credit Is Here To Stay

By Liz Washko (June 15, 2018, 12:29 PM EDT) -- Originally signed by President Franklin D. Roosevelt in 1938, the Fair Labor Standards Act turns 80 this year. In this Expert Analysis series, attorneys and other experts most familiar with the statute provide different perspectives on the law's impact and development over the course of its history.

Liz Washko It is quite common in the hospitality industry for employers to pay tipped employees a cash wage that is less than the required minimum wage. This practice is permissible under the Fair Labor Standards Act's tip credit provisions. The philosophy underlying the tip credit is that the tipped employees are receiving compensation...

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