Understanding Tip Credits

The topic of tip credits can be confusing for business owners and employees, but it’s important to understand the role that tip credits play in minimum wage calculations. Approaching tip credits the right way ensures that your employees are fairly compensated and your taxes are prepared correctly. You’ll also improve your employee retention rate. We’ll break down the basics of tip credits and explain the latest requirements.

Already understand tip credits? Jump to the latest updates from the US Department of Labor.

What Is a Tip Credit?

cash

Claiming a tip credit is a legal way for employers to count employee tips towards their obligation to pay minimum wage. Employers do not "take" the tip credit away from employees. It’s simply a figure that is used in minimum wage calculations. Tip credits show the federal government that Employee A has made enough money in tips that they don’t need to be paid the full minimum wage.

What Employers Need to Know About Tip Credits - Employees must be paid the federal minimum wage unless you're claiming a tip credit for them. You must provide written or verbal notice that you're claiming a tip credit.

What Workers Need to Know About Tip Credits - If employers are claiming a tip credit for you, it must be accurately declared on a pay stub and/or tip credit report. You keep all your tips, and tip credits don't take anything away from your pay. In fact, if you aren't making enough money in tips, a tip credit can help you get paid more.

If that doesn't clear things up, you're not alone. Tip credits are notoriously confusing, so we'll give a deeper explanation below.

What Is a Tipped Employee?

First of all, what are tipped employees? According to the Fair Labor Standards Act (FLSA), tipped employees are described as any employee who regularly receives more than $30 per month in tips. Restaurant servers probably come to mind, but tipped employees also include valet staff, delivery drivers, and bartenders.

What Is the Minimum Tip Wage?

The amount of gratuity that tipped employees earn usually exceeds the federal minimum wage ($7.25 an hour), so employers are allowed to pay these employees less than the standard minimum. This is called the minimum tip wage. Every state sets its own tipped minimum wage, but it must meet the federal requirement of at least $2.13 an hour. Many states, like California and Washington, pay a much higher tipped minimum wage. The US Department of Labor website provides more info on minimum wages for tipped employees by state.

What If Employees Don’t Make Enough Tips?

Did you know that employers are required to pay tipped employees the federal minimum wage ($7.25) if they don’t make enough tips in one pay period? You might be thinking, "Hold on, what about the tipped minimum wage?" Even though tipped employees can legally be paid the lesser tipped minimum wage ($2.13), it is only with the understanding that their tips and wages combined will be equal to or greater than $7.25.

When tips plus wages don't equal $7.25, the employer must make up the difference. Since many tips are cash, how does the federal government know that employees are making enough tips to meet minimum wage? This is where tip credits come into play.

How To Calculate a Tip Credit

female worker in apron tallies up tip credits with calculator on phone

To legally prove a tipped employee is making enough money, the tip credit should be declared on a pay stub and/or a tip credit report. Tip credits are calculated on a weekly or bi-weekly basis, depending on the pay schedule. It's also the employer's responsibility to explain tip credits to their tipped employees verbally or in writing. Every state sets a maximum tip credit, but the federal max tip credit is $5.12 per hour ($7.25 min wage - $2.13 tipped min wage = $5.12 max tip credit).

Many POS systems can be set up to perform this function automatically, but a tip credit calculation would look something like this:

Hours Worked: 30 hours

Total Tips Earned: $375

Max Tip Credit: $5.12 / hour

Divide the total number of tips by the hours worked to calculate how much the server has earned per hour for that pay period.

$375 tips ÷ 30 hours = $12.50 per hour

$12.50 per hour is greater than the maximum tip credit of $5.12, so the server has made enough money in tips. The employer can claim the full tip credit of $5.12 and has no further obligation to pay the employee additional wages. Remember, the employer is not taking the tip credit away from the employee. The tip credit represents the amount the employer doesn't have to pay. Let's take a look at a tip credit calculation that is less than the max tip credit:

Hours Worked: 30 hours

Total Tips Earned: $120

Max Tip Credit: $5.12 / hour

$120 tips ÷ 30 hours = $4 / hour

Because $4 per hour is less than the tip credit of $5.12, the employer can only claim $4 toward their obligation to pay minimum wage. They must make up the difference on the employee's paycheck.

$5.12 tip credit - $4 / hour = $1.12 / hour

$1.12 / hour x 30 hours = $33.60

The employer pays an additional $1.12 an hour to this employee for a total of $33.60 added to their normal wages.

Updates to Fair Labors Standards Act (FLSA)

waitress wiping wooden table with cloth

Restaurant owners know that servers and waitstaff perform a lot of duties besides just serving their customers. Sidework duties for servers could include sweeping the floors around their section, keeping salt and pepper shakers filled, or filling the ice at their beverage station. Many of these duties are necessary to be able to serve customers, but there are instances when tipped workers should be compensated for performing non-tipped labor and dual jobs. The most recent updates to the Fair Labor Standards Act divide a tipped employee’s duties into three categories:

  1. Tip-producing work - Tasks that provide a service to customers and result in a tip
  2. Directly supporting work - Duties spent preparing for tip-producing work or assisting others with customer service work that results in a tip
  3. Work that is not part of a tipped occupation - Any tasks that do not result in a tip and do not support tip-producing work

Note: Any time spent performing work that is not part of a tipped occupation (C) will be compensated at the full minimum wage and a tip credit cannot be claimed. Examples of this type of work would be requiring servers to clean the kitchen or restrooms, perform accounting duties, or prepare food items.

What Is the 80/20 Rule?

The final ruling on the 80/20 rule that went into effect in December 2021 states that there is a 20% limit on time spent performing non-tipped duties. If a server spends more than 20% of their total workweek performing duties that fall into the directly supporting work category (B), they must be paid full minimum wage for that time and the employer can’t claim a tip credit.

What Is the 30 Minute Rule?

Under the 30 minute rule, if a server spends more than 30 minutes performing directly supporting work (B), they must be compensated at full minimum wage for all time exceeding 30 minutes. For example, the employee opens the store and spends 35 minutes setting up the beverage stations. They must be paid for the time exceeding 30 minutes (5 minutes) and the employer cannot claim a tip credit for this time.

What About Idle Time?

Sometimes business is slow and servers wait a considerable amount of time for a table. According to the Department of Labor, this idle time is included in directly supporting work (B). This means that idle time that exceeds 30 minutes needs to be fairly compensated at minimum wage with no tip credit.

What Employers Need to Know About the Updates for Tipped Employees - In general, you'll need to pay closer attention to the sidework duties your servers are performing and for how long. You'll need to recognize the difference between duties that support earning tips versus duties that have nothing to do with tips. If you have servers on the clock and they have no tables to wait on, you have to pay them fairly for the time they spend on sidework duties.

What Workers Need to Know About the Updates for Tipped Employees - If you regularly spend time on non-tip producing labor when you have no tables to serve, keep track of how long you're performing these duties. You may deserve a better pay rate if the time equals out to more than 30 minutes of continuous work or 20% of your entire workweek. The idle time when you have no tables is also included.


Calculating compensation for tipped employees does come with its challenges. Banning the tipping system altogether is an idea that some restaurant owners have tried, but it has failed to gain support from the majority of employers and employees. The truth is, working for tips can be very profitable and it lowers the labor cost for operators. Understanding and abiding by compensation laws is the best way to make sure your tipped employees are treated fairly and the tipping system continues to be beneficial for all.

Posted in: Management & Operation|By Michale LeRoy
The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details.
External Link

You are about to leave the security of WebstaurantStore.com.

We are not responsible for the privacy policy or any content, links or software, or any consequences from your access to or use of the technologies, websites, information and programs made available on this new site.

Do you want to proceed?

Related Resources

  • Tip Pooling Laws

    Tips play an essential role in compensating foodservice workers. Most customers plan to tip their server, but inevitably those tips will vary based on the party size, the cost of the bill, and the generosity of the patron. Some employers worry about tensions rising between their tipped staff and choose to forgo tipping altogether. However, employers can make sure each tipped staff member earns a fair share of tips through a process known as tip pooling. As a foodservice operator, you’re legally responsible for making sure tip pooling is done correctly and your workers are receiving their tips. To assist you, we explain what tip pooling is, who participates in it, and the legalities of restaurant tipping policies. Jump ahead to learn more restaurant tipping policies: What Is a Tip? Tip Pooling Explained Employer Tip Policies Employee Tip Policies Restaurant Tip Laws Tip FAQ What Is Considered a Tip? A tip, also known as a gratuity, is money beyond the cost of the bill given to an employee by a customer for the service provided. Cash, check, and credit card tips given to staff for services rendered are considered tips. Service charges are not considered tips. What Is Tip Pooling? A tip pool is a collection of all (or a portion of all) the tips received by directly tipped staff that is redistributed evenly amongst the tipped workers. Once the tipped staff put their tips into one large "pool", the tips are then divided among them. Back-of-house employees whose work assists tipped staff may participate in the tip pool if the servers also make the minimum wage and no tip credit is taken from them. Tip pooling ensures all employees are fairly compensated for their work. It's especially helpful when multiple services are being rendered and a single point of payment is used. To understand how tip pooling works, consider this example: In a busy coffee shop, one employee oversees taking drink orders, several people oversee drink order preparation, one person oversees delivering the orders to the customers, and another person buses the tables after the customers leave. Tip pooling would ensure that all parties, from the order taker to the busser, receive their fair share of the tips earned. Is Tip Pooling Legal? Many states empower employers to legally require tip pooling. Check your state and local guidelines to confirm whether tip pooling is legal in your area. Regardless of your region, tip pooling is only legal if tipped employees still receive the mandated minimum wage while participating. If the employer takes a tip credit, then back-of-house staff must not participate in tip pooling. However, if the employer does not take a tip credit, back-of-house staff can legally participate in tip pooling. Tip Pooling vs Tip Sharing Unlike tip pooling, tip sharing (or "tipping-out") doesn't involve an equal distribution of tips between employees, but rather a set distribution rate, which is typically recommended by the employer. These rates are normally a percentage of tips, sales, or category receipts. The tip-out policy should be defined to distribute the pre-set percentage of funds to support staff, separately and apart from the pool participants. Tip Pooling vs Tip Credit Tip pooling and tip credits are two distinct things. A tip credit is a legal way for employers to count employees' tips towards their obligation to pay minimum wage. An employer may both take a tip credit and require tip pooling. In such cases, the tip pool will redistribute to each employee the amount applied to their tip credit. Can Employers Take Tips from Employees? If it's considered a tip, it belongs to the employee, not the employer. Employees cannot be required to give their tips or a portion of their tips to the company unless it’s to participate in a valid tip pooling policy. When tip pooling occurs, the employer cannot be part of the pool. Only employees may participate in tip pooling. Cash Tips - In all states, 100% of the cash tip is considered the employee’s property. Check Tips - In all states, 100% of the check tip is considered the employee’s property. Credit Card Tips - Some states mandate that the employer give the employee the full tip indicated by the customer, while other states allow the employer to subtract the credit card company’s processing fee from the tip before presenting it to the employee. However, the Department of Labor mandates that subtracting the transaction fee is only acceptable if it doesn’t reduce the employee’s pay below minimum wage. If it does, you must reimburse the employee on the next payday, and you must not wait until you receive the reimbursement from the credit card company. Service Charges - Services charges are mandatory fees that pay for the services provided. They are added by the restaurant regardless of party size. The employer is not obligated to give any of this money to the employee. Since it is part of a contract, not a voluntary tip, employees have no legal right to the money from service charges. Restaurant Tip Policy for Employees To make sure all their restaurant staff members are fairly compensated for their efforts, many foodservice operators develop a tip pooling program for employees. We explain which employees participate in tip pooling. Employees Who Participate in the Tip Pool Employees who customarily and regularly receive more than $30 per month in tips participate in the tip pool. It helps create a team environment since all tipped staff share in the tips received. Examples include: Bellhops Bussers Counter personnel Service bartenders Servers Employees Who May Conditionally Participate in the Tip Pool Employees who do not customarily and regularly receive tips but whose jobs support tipped workers may legally participate in tip pooling if the servers also make the minimum wage and no tip credit is taken for them. Examples include: Bakers Chefs Cooks Dishwashers Janitors Who Cannot Receive Tips? Supervisors or staff members with supervisory responsibilities cannot receive tips unless the tip is for services that they directly and solely provide. They must not participate in tip pooling. Examples of team members excluded from tip pooling include: Banquet managers Beverage managers Catering managers Dining room managers Food and beverage managers/directors Foodservice directors General managers Kitchen managers President/CEO Restaurant Tip Laws Under federal and state law, restaurant employees’ tips belong to them, not their employers. While this has always been the case, the Department of Labor updated its regulations in 2020 and 2021 to protect tipped workers. Their rulemaking explicitly prevents employers, supervisors, and managers from taking their employees’ tips by addressing 2018 legislative amendments to the Fair Labor Standards Act. It also updated regulations surrounding “dual jobs” and clarified the circumstances that permit an employer to take a partial credit against their minimum wage obligations. We outline these updates and their ensuing clarifications below. On December 30th, 2020, The Department of Labor published a final rule “Tip Regulations Under the Fair Labor Standards Act (FLSA)”. On April 30, 2021, the following parts of this rule became effective: Employers, managers, and supervisors must not keep employees' tips under any circumstances. This includes tips received through tip pools. Non-tipped employees can participate in a tip pool if their employer pays the full minimum wage and takes no tip credit. In most cases, employers who collect tips for a mandatory tip pool must fully redistribute the tips within the pay period. Employers who collect their staff’s tips to operate a mandatory tip pool but don’t take a tip credit are required to maintain and preserve payroll or other records with information on tip-receiving staff members. They must also record the weekly or monthly number of tips reported by the employee. On September 24, 2021, The Department of Labor issued the Civil Money Penalty (CMP) final rule, which withdrew and modified two sections of the 2020 Tip final rule. The CMP final rule became effective on November 23, 2021, and accomplished or clarified the following points: Restored - The Department of Labor’s ability to evaluate CMPs against employers violating the FLSA by taking their employees’ tips was restored. Violations need neither be repeated nor willful for them to be evaluated. Adoption - The same procedures, rules, and amount considerations as apply to other FLSA CMPs were adopted for tip keeping. Clarification - Managers and supervisors must not receive tips from tip pools but are not prohibited from contributing to mandatory tip pools. Clarification - Managers and supervisors may keep tips if customers give them for services they directly and solely provide. Then, on October 29, 2021, The Department of Labor issued the Dual Jobs final rule which withdrew and modified the dual jobs section of the 2020 Tip final rule. Effective on December 20th, 2021, The Dual Jobs final rule accomplished the following points: Clarification - Employers must only take tip credits for time spent performing tipped work and must not take tip credits for time spent on untipped work. Defined - Tip-earning work and work that directly supports tipped workers were defined as tipped occupations. Clarification - Tip-producing work is any work performed by a tipped employee that they receive a tip from the customer for doing. For directly supporting work, the employee must be assisting in the preparation or execution of tip-producing work. Clarification - To count as tip-producing work, a non-tipped worker must perform tasks that directly support tipped employees for either over 20% of hours worked during the part of the workweek that they engaged in a tipped occupation or during a continuous period of 30 minutes. Restaurant Tips FAQ To help foodservice operators navigate tipping procedures, we answer the most frequently asked questions about restaurant tipping policies below. Is a Service Charge a Tip? A service charge is not a tip. It's a mandatory fee charged by a business for providing its products or services. Waiters and staff members do not receive any of the service charge money. While you may wish to forgo a tip after seeing a service charge, doing so will leave your waiter under-compensated. What Is Tipping Out? A tip out is a percentage of a server’s tips that they share with other employees whose jobs indirectly assist them. Tip outs can be voluntary or part of a mandated tip sharing agreement. Beneficiaries of tip outs include bussers, back waiters, and bartenders. Paying Credit Card Tips to Employees When tips are included in credit or debit card payments, employers must pay the tip to the employee. Check your state law to see if you’re permitted to reduce the tip to cover the transaction fee charged by the credit card company. Can an Employer Claim Tips for You? According to the Fair Labor Standards Act (FLSA), an employer can credit a portion of their employee's tips towards paying them minimum wage. The employer can claim set amounts against the minimum wage requirement but must not deduct tip credits from their staff’s pay. How Tipping Works When eating in a restaurant in the United States, diners should plan to tip their waiter between 15 and 20 percent of their pre-tax bill. If paying your tip with a credit card, calculate your tip based on your pretax bill and then write the amount on the tip line of your receipt. If you want to pay your tip with cash, leave your tip behind for your waiter after you’ve settled your bill. Can a Manager Take Tips? Under FLSA (Fair Labor Standards Act), managers are prohibited from keeping their employees’ tips. The only time managers can take tips is to put them in a tip pool, but they cannot participate in the tip pool. The only tips managers can receive are those given to them for services that they directly and solely provide. What Percentage of Tips Are Servers Required to Claim? Servers are required by law to report 100% of their tipped income. If a business's total reported tips on food and beverage sales is less than 8%, the business is required to allocate additional tipped income on the W2 of every tipped employee that reported less than 8% of respective sales. Now that you understand tip pooling, you can take steps to execute it legally. Creating an equitable environment is not only essential for your legal standing, but it also fosters loyalty and support from your staff. With the rise of staffing shortages, securing employee loyalty has never been more important.

  • Automatic Gratuity: What You Need to Know

    Giving your server a tip is a cultural expectation of dining at a restaurant in the United States. Recently, more restaurants have added automatic gratuity charges to the final bill, which some customers find confusing. While the purpose of this charge ranges from simplifying checks for large parties to eliminating tipping, automatic gratuity plays a unique role in restaurant bookkeeping and employee payroll. Use this guide to auto gratuity to fully understand how it works, the laws surrounding the charge, and the pros and cons to decide if it's right for your restaurant. What Is Automatic Gratuity? Auto gratuity is a legal service charge added to a party's bill that goes directly to the waitstaff serving that table. Usually, this gratuity equals 18% of the check and is only applied to parties of six or more to ensure that servers receive ample compensation for their efforts. A restaurant will generally print this policy on its menu to alert patrons before they receive their bill. Is Automatic Gratuity a Tip? No, automatic gratuity is a service charge. This classification means the amount is predetermined and considered a fee, so the customer is legally obligated to pay it. Why Do Restaurants Add Gratuity for Large Parties? In the past, automatic gratuities often ensured adequate compensation for a server when handling a large party. A table of this size could want to split their bill, and as a result, confusion or miscalculation could arise and leave the server improperly tipped. Is Automatic Gratuity Legal? Yes, automatic gratuity is legal. Laws instated by the IRS rule that automatic gratuity is a service charge, and no legislation prohibits this practice. However, state laws may differ on if this charge is compulsory. In some states, restaurants must mention automatic gratuities on the menu or verbally inform customers about the fee before they receive it. To avoid confusion or conflict, clearly state your automatic gratuity policy on your menu or have your servers inform any affected parties at the beginning of their meal. Can You Refuse to Pay Automatic Gratuity? No. Customers cannot refuse to pay automatic gratuity since the payment is a service charge. Tips are optional and freely given by customers, but charges on the receipt from the restaurant itself are mandatory fees. Not paying the automatic gratuity is the same as not paying for the food. However, a recommended or suggested tip is not the same as an auto gratuity. With suggested tips, the percentage is merely a guideline, not a requirement. The customer may choose what tip amount they want to give their server, if any. Restaurants should clearly label suggested tips and automatic gratuities on the bill. Auto Gratuity Law In 2012, the IRS stated that automatic gratuities would be classified as service charges beginning in January 2014. With this update from the IRS, automatic gratuities count toward employees' regular paychecks and are taxed differently than traditional tips. Employers must also report charges as a wage on payroll reports, not as tips. If the restaurant institutes auto gratuity, the server's income must be at least equal to the state's minimum wage since they are not receiving any tips. Due to the differences in taxation and classification, traditional tips allow employers could pay employees less than minimum wage because of their supplemental tip income. However, with automatic gratuity counting as a service charge and not a tip, servers must receive the legal minimum wage of their area for their shifts worked with only auto gratuity on guests’ bills. What Is the Difference between a Service Charge and a Tip? A service charge differs from a tip in that a service charge is counted as a wage, whereas a tip is a separate source of income. The following guidelines determine if something qualifies as a tip. The customer gives it freely The customer determines the amount It is not affected by employer policy or negotiation The customer is free to choose who receives the payment As a service charge, automatic gratuity is compulsory. Unlike a tip, automatic gratuity funds are considered restaurant funds and are not specifically designated as the property of the server by the customer. An employer may share part or none of the automatic gratuity funds with their employee. Pros and Cons of Automatic Gratuity Here are some pros and cons of implementing an automatic gratuity policy in your restaurant. Pros of Automatic Gratuity Helps avoid confusion when large parties split bills Is a service charge designated as restaurant funds, so the restaurant owner can choose how to allocate the total Cons of Automatic Gratuity Requires restaurateurs to pay employees minimum wage for any shifts worked where no traditional tips were given Discourages customers from tipping more than the gratuity, even if they would normally leave a 20% tip While automatic gratuity can help ensure adequate compensation after serving large parties, it can also bring about some challenges regarding your restaurant's bookkeeping. If you want to implement an auto gratuity policy in your establishment, familiarize yourself with the applicable legislation in your state. Remember that automatic gratuity funds are taxed differently than tipped income for servers, and print your policy on your menu or another prominent place to avoid confusion with customers. <aside class="pquote"> <blockquote> The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details. </blockquote> </aside>

  • Restaurant Labor Laws

    To protect workers and employers, there are a series of employment and restaurant laws all restaurant owners must abide by. These laws, set by the United States Department of Labor as well as state and local governments, are designed to provide a safe, healthy, and fair workplace to create restaurant employee rights. In this guide, we outline some of these key restaurant labor laws, including policies on wages and tipping practices, the employment of minors, and occupational health and safety. Shop All Bookkeeping Supplies Click any of the restaurant labor law sections below that interests you: Restaurant Wages and the Fair Labor Standards Act Employing Youths or Minors The Occupational Safety and Health Act (OSHA) The Equal Employment Opportunity Commission Laws Enforced by the EEOC Restaurant Wages and the Fair Labor Standards Act Many restaurant labor laws come from the Fair Labor Standards Act (FLSA), an act originally signed by Franklin D. Roosevelt in 1938. This act explains the standards set for full-time and part-time workers in the private sector and federal, state, and local governments. The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards for businesses in the foodservice industry to aid in restaurant employee rights. Below are the FLSA requirements: Minimum revenue for subjection: An establishment's annual gross sales must total at least $500,000 to be subject to FLSA rules and regulations Minimum wage requirement: Entitles non-exempt workers to the federal minimum wage of $7.25 per hour unless an individual state's law requires a higher wage Deductions and minimum wage: Deductions for cash shortages, required uniforms, or customer walk-outs are illegal if they drop the employee's wage below the minimum wage Tips and minimum wage: Tips may be considered part of wages, but the employer has to pay no less than $2.13 an hour and also make sure that the tips and wages add up to at least the minimum wage Overtime: Employees who work overtime are to be paid one and one-half times their regular rate of pay for each hour over 40 hours per week Overtime and tips: Tipped employees who work overtime are to be paid one and one-half times the applicable minimum wage, not one and one-half times $2.13 Youths and minimum wage: Youth employees under the age of 20 may be paid a minimum wage of no less than $4.25 an hour during the first 90 days of their employment Restaurant Tips and Bookkeeping While the FLSA outlines parameters for legal wage and tipping practices, ensuring that your servers are earning at least minimum wage with tips can sometimes cause bookkeeping complications. Depending on the size of your staff and the volume of your customers, tracking your employees' tips can be a daunting task. Here are some things to keep in mind: If tips are not accurately counted or reported, employers could face fines related to improperly distributed pay. Carefully consider which pay strategy works best for your establishment. Failure to comply with federal wage laws could result in legal action from employees and potentially cost your business more time and money than a fair wage practice would. For more information on the minimum cash and tipped wage in your state, check out this data from the United States Department of Labor. Employing Youths or Minors Under FLSA guidelines, there are several provisions that business owners must follow in regards to employing minors. Each age group below has its own requirements to properly follow restaurant labor laws: 13 years old and younger - Minors that are 13 years old or younger may not be employed unless employment falls under an approved exception. Parents or guardians may employ their own children in non-hazardous occupations under this exception. To learn more about minor employment exceptions, visit the U.S. Department of Labor website. 14 and 15 years old - These minors may be employed in non-hazardous occupations for no more than 3 hours on a school day and 18 hours in a school week. Hours may not begin before 7 a.m. or end after 7 p.m. Outside of school hours, they may work 8 hours on a non-school day and 40 hours in a non-school week. Hours are extending to 9 p.m. from June 1st to Labor Day. 16 and 17 years old - Minors that are 16 or 17 years old may perform any non-hazardous job for an unlimited amount of hours. Hazardous vs. Non-Hazardous Jobs for Minors There are both hazardous and non-hazardous duties in every food service establishment. Minors under the age of 18 are not permitted to perform any hazardous tasks, which includes coming into contact with cooking equipment that could potentially cause an injury. However, there are several non-hazardous jobs that minors can perform safely to stay in line with restaurant labor laws. Here are some examples of hazardous and non-hazardous job duties: Hazardous Using bakery equipment Operating meat-processing equipment Operating or maintaining power-driven equipment like slicers, grinders, mixers, etc. Non-Hazardous Cashier and bagging duties Fruit and vegetable cleaning or prep Dishwashing Light-duty cooking The Occupational Safety and Health Act (OSHA) OSHA was passed in 1970 to create healthier, safer working environments through training, outreach, education, and assistance. OSHA requires that all employers: Provide a hazard communication program for employees Train employees properly to prevent accidents Provide necessary protective equipment Have access to a first aid kit Display posters from the Department of Labor or their state labor department that inform employees of their protections and rights (example seen to the right) OSHA-Approved State Plans OSHA also permits states to submit their own safety plans for approval. These plans are monitored by OSHA and must be successful at protecting employees and preventing accidents. The following states have plans that cover both private sector and state and local government workers: Alaska Arizona California Hawaii Indiana Iowa Kentucky Maryland Michigan Minnesota Nevada New Mexico North Carolina Oregon Puerto Rico South Carolina Tennessee Utah Vermont Virginia Washington Wyoming Connecticut, Illinois, Maine, New Jersey, and New York operate under an OSHA-approved plan that covers state and local government only. All other states operate under a federal OSHA-approved plan that covers most private-sector workers but no state or local government employees. The Equal Employment Opportunity Commission This commission reviews cases of discrimination and enforces the federal laws that make it illegal to discriminate against job applicants or employees based on the following: Race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information A complaint about discrimination on an employee's behalf Laws Enforced by the EEOC You are required to display a poster with information about federal employment discrimination laws so that it can be seen by all employees. Here are some laws that are enforced by the EEOC that may be relevant to your restaurant workplace. The Equal Pay Act of 1963 - makes it illegal to pay different wages to men and women if they perform equal work in the same workplace. Title VII of the Civil Rights Act of 1964 - outlaws discrimination based on race, color, religion, national origin, or sex. The law also makes it illegal to retaliate against someone for filing a charge, complaining of, or taking part in a lawsuit or investigation of discrimination. Title VII also forbids discrimination based on sexual orientation or gender identity and these protections apply regardless of state or local laws. The Age Discrimination in Employment Act of 1967 - protects people 40 and older from discrimination based on age. Sections 501 and 505 of the Rehabilitation Act of 1973 - makes it illegal to discriminate against a qualified person with a disability in the federal The Pregnancy Discrimination Act of 1978 - outlaws discrimination because of pregnancy, childbirth, or a medical condition related to childbirth. Title I of the Americans with Disabilities Act of 1990 - makes it illegal to discriminate against a qualified person because of a disability in both the public and private sectors. Sections 102 and 103 of the Civil Rights Act of 1991 - permits jury trials and monetary damage awards in intentional discrimination cases. The Genetic Information Nondiscrimination Act of 2008 - makes it illegal to discriminate against employees or applicants based on their genetic information that might identify family members, disease information, or disorders and conditions in the family's medical history. Refer to this guide to ensure that you are following all of the necessary labor laws in your restaurant. Failure to uphold these regulations could result in fines or legal action, so restaurateurs must familiarize themselves with these policies to run a safe, fair, and legal establishment. <aside class="pquote"> <blockquote> The information provided on this website does not, and is not intended to, constitute legal advice. Please refer to our Content Policy for more details. </blockquote> </aside>

    • Shop Now

    Archives

    Webstaurant TVProduct demonstrations, how-to's, & descriptions ArticlesIn-depth information and tips for running a successful restaurant Buying GuidesTools to help you find the perfect product for your business