We continue to see clients come into our Miami office alleging the failure of their employer to pay the federal minimum wage. Apparently, this is not unusual, especially in low wage industries, such in the food service, child care, construction and janitorial industries. Indeed, yesterday the U.S. Department of Labor announced that it will increase enforcement efforts in those industries, especially in western States in order to curb minimum wage and overtime pay violations.
Under the Fair Labor Standards Act of 1938 (FLSA), covered employers must pay a minimum wage of $7.25 per hour and, when their employees work over forty (40) hours per week, employers are required to pay at least one and one-half times the minimum wage for all such hours over forty. Tipped employees, meaning those who receive more than $30 per month in tips, may be paid a reduced direct wage of $4.23 per hour. However, certain other rules apply in order for an employer to take advantage of this so-called "tip credit." Specifically, the law provides that the employer must inform each tipped employee that it will be taking the tip credit before the "tip credit" is taken and must allow all tipped employee to retain all of their tips. In this respect, the practice of requiring tipped employees to "tip-out" other non-tipped employees (such as kitchen workers) could be a violation of the law. In addition, reductions for mistakes, such as breakages, spills, etc., could also result in a violation of the law if it causes the direct wage to be reduced below the federal minimum wage.
If you have questions regarding the Fair Labor Standards Act or other employment laws, contact the Law Offices of Santiago J. Padilla, P.A. as soon as possible. Based in Miami, Florida, we represent employers and employees throughout South Florida in employment cases. To set up a free initial consultation, you can contact us through the Internet or call us at (305) 358-1949.
