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Employer pays below minimum wage South Carolina

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  • Employer pays below minimum wage South Carolina

    Is it true that an employer, in regard to tip earners, must make up the difference between amount earned (wage + tips) and minimum wage?

    There is not a minimum wage in South Carolina, so the minimum wage defaults to the federal minimum wage... now $7.25

    Employer (small business - restaurant) pays wait staff $2.13 per hour. I'm not sure if it is relevant, but there are at least 8 servers. There are also managers, bartenders, cooks, hosts, dishwashers, etc.
    Servers' tips regularly amount to less than $5.12 per hour (7.25 - 2.13). The difference is not given to the servers and tip amounts reported on pay stubs are made up by the employer.

    There are a crew of servers that seem to be getting taken advantage of by their employer.

    What are the laws or courses of action?

  • #2
    A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

    http://www.dol.gov:80/dol/topic/wages/wagestips.htm

    If you are not receiving at least min. wage, you can file a wage claim with the SC Dept. of Labor, Licensing, and Regulation.
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    • #3
      tip amounts reported on pay stubs are made up by the employer.
      "Made up" as in overstated to the extent that the records reflect you ARE making minimum wage?

      The DOL doesn't like that. Neither does the IRS, to the extent that your W-2 will be incorrect. How are your reporting your actual tips to the employer?
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        "'Made up' as in overstated to the extent that the records reflect you ARE making minimum wage?"

        Yes. Made up as in it doesn't reflect what I make and ALWAYS reflects much more than I make.

        The most recent pay stub reported I made 124 dollars... when in reality, I barely made 60 dollars in tips.

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        • #5
          What the state is going to care about is that the employer is falsifying the tip records in order to avoid paying minimum wage. If that is the case, I would immediately file a complaint with the state Dept. of Labor.

          If, in the example you gave, the $60 in tips you DID report would have been enough to bring you up to minimum wage, there would be no MW violation. However, incorrect W-2s are still an issue.

          Do you have your own copies of the tip reports you turned in?
          Last edited by Pattymd; 11-20-2009, 03:39 AM.
          I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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          • #6
            You should use the official IRS form to report your tips to the employer, keep in mind to keep a copy for yourself.


            http://www.irs.gov/pub/irs-pdf/p1244.pdf
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            • #7
              Response with tip record information

              I have record of how many tips I made, but it's simply hand written amounts and dates. To report tips, we simply type it in on the computer when clocking out... even though the manager encouraged us to put zero in the computer when it asked for our tip amount.

              He does his own accounting (and he is not an accountant or anything related) so I'm sure if someone audited him.. he'd get exposed for all sorts of things. As far as the problems I've had, I don't know how to prove it when making a complaint (which is probably been my hesitation)... but my motivation to report him is in interest of the other employees there.

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