External Publication

External Publication

A Huge Tip on Wages vs Tips

  • 1 minute read
ISSA Today

In this article, Littler’s Tanja Darrow details potential liabilities for employers related to the treatment of a gratuity versus a mandatory service charge in employee wage calculations. She notes that employees across the country are bringing cases claiming that their tips are mandatory service charges that should be included in their regular rate of pay for the purposes of calculating overtime.

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