Tip Credits and Florida Minimum Wage Laws

Gomez, Rudy - 300dpi
Rudy Gomez

Background: The Fair Labor Standards Act (“FLSA”) and Florida minimum wage law allow an employer to take a tip credit toward its minimum wage obligation for “tipped employees”. A “tipped employee” is an employee who customarily and regularly receives more than $30 per month in tips. 29 U.S.C. § 203(t). An employer is permitted to take a tip credit equal to the difference between the minimum wage (currently $8.25 in Florida) and the required cash wage (currently must be at least $5.23 in Florida). Thus, the maximum tip credit that an employer can currently claim under the FLSA and Florida law is $3.02 per hour ($8.25 – $5.23).  Continue reading

$282.55 Short Of An FLSA Claim

Shooman, Jeff - 300dpi
Jeff Shooman

Executive Summary: With Fair Labor Standards Act (“FLSA”) lawsuits becoming ubiquitous in recent years, it can be easy to forget that the act does not apply to all businesses or all employees.  On July 17, 2018, the U.S. Court of Appeals for the Eleventh Circuit provided a useful reminder that the first step in analyzing any FLSA claim is not determining if there are minimum wage or overtime violations, but rather if the FLSA applies at all.   Specifically, in Collar v. Abalux, Inc., No. 18-10676, __ F.3d __, 2018 U.S. App. LEXIS 19592 (11th Cir. July 17, 2018) the Eleventh Circuit affirmed the grant of summary judgment to an employer because the FLSA was not triggered given that the company had less than $500,000 in annual gross receipts, which is the minimum for enterprise coverage under the statute. Continue reading