Tipped Employees
Bies
1 Post
The person that maintained payroll before I took over the responsibility told me that the banquet staff (hourly employees) were not eligible for overtime pay because they are in the tip pool and their wages are more than overtime pay. I have look for information on exemption for tipped employees but have not been able to find a specific. If someone could shed some light on this for me I would greatly appreciate the information.
Comments
Our banquet employees are paid less than minimum wage and receive a share of a percentage of the banquet service charge. If they incur OT, they must be paid overtime rates based on total remuneration paid, otherwise known as a weighted average. The banquet gratuity or service charge is not paid voluntarily as a tip would be paid to a restaurant server. We charge a certain percentage to the banquet client; it is then divvied (sic) up between Banquet Mgr., Banquet Capts., sometimes, Catering Manager, a certain amount goes to the house and a certain percentage is divided between those serving the function. We collect the service charge from the banquet client and pay out the servers shares on their pay checks, therefore, it is remuneration paid by the employer.