I am having issues in getting information on how tip credit is affected and calculated in states that use weighted average overtime. My assumption, for better or worse, is that the overtime rate calculations for tipped employees would use the average of all jobs for the default rates in the calculation even if some of those jobs were not tipped jobs.

So if normal tip credit is calculated as ((minimum wage) x (wage multiplier)) - ((minimum wage) - (default pay rate)) what happens when weighted average overtime is also in place?


Any information or links is appreciated


Thanks

Huh? I'm not sure I understand your formula. I'll get back to your post in a later tonight.

There are several ways to come up to the correct wage for overtime purposes on a tip employee, when working on different rates. In all instances straight time has been paid, only the ½ time of the average is owe as overtime. Here are some examples:

#1 Tip only wages - This is the most straight forward formula.
Tip wages + ½ of the appropriate minimum wage ($2.58 Federal or $3.20 for state in Florida) for every overtime hr.
This sample assumes the federal tip wages of $2.13 for every worked hr plus ½ of minimum wage ($2.58/$3.20) for every overtime hr. If you worked 50 hrs, the pay should be $2.13 x 40 =$85.20 + $4.71 x 10 = $47.10, total due $132.30

If the state has a higher minimum wage then it must be used rather than the federal.

#2 Tips wags + additional hrs at different rates (which I believed this is your question)

Hrs Rate Due
30 $2.13 $ 63.90
20 $6.00 $120.00

In here you must bring the tip wages to the appropriate minimum wage (federal or state) in Florida is $6.40. Then 30 hrs x $6.40 = $192.00 + $120.00 = $312.00 ÷ 50 hrs = $6.24 weighted average ÷
2 = $3.12 for every overtime hr.