Employees in the service industry, such as bars and restaurants, receive tips from customers. Tips are optional payments by customers to employees as gratuity or gifts to appreciate the employee’s services. The law defines tipped employees as those who regularly earn more than $30 a month in tips.

photo credit: Pixabay

Tipping laws, regulated by the Fair Labor Standards Act, exist to protect tips as part of the employee income and ensure that employees receive a minimum wage. As a CEO of a business in the service industry, you need to understand tipping laws as they determine how you pay your employees.…