As a legal expert with a focus on labor law, I can provide you with a comprehensive understanding of the legality of paying waiters below the minimum wage in the United States. It's important to note that labor laws can vary significantly by country, and the information provided here is specific to the U.S. context.

The Fair Labor Standards Act (FLSA) is the cornerstone of wage and hour law in the United States. It establishes minimum wage, overtime pay eligibility, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments.

Under the FLSA, there are certain provisions that allow for the payment of tipped employees at a rate lower than the standard minimum wage. This is often referred to as the "tipped minimum wage." However, there are strict conditions that must be met for this to be legally permissible.

Firstly, an employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, which is currently $7.25 per hour. This means that if an employee does not earn enough in tips to make up the difference, the employer is legally obligated to make up the difference so that the employee receives at least the federal minimum wage.

Secondly, the employee must retain all tips. This means that employers cannot take a portion of the tips for themselves. Tips are the property of the employee and are a crucial part of their income, especially in roles where tips are expected and customary.

Thirdly, the employee must **customarily and regularly receive more than $30 a month in tips**. This is a threshold that helps to define who is considered a tipped employee for the purposes of the FLSA. If an employee does not meet this threshold, they may not be eligible for the tipped minimum wage and should be paid at least the standard minimum wage.

It's also worth noting that some states have their own minimum wage laws, which may be higher than the federal minimum wage. In states where the state minimum wage is higher, employers must pay the higher wage rate. Additionally, some states have specific rules regarding the payment of tipped employees that may differ from federal regulations.

Employers who fail to comply with these regulations can face significant penalties, including back wages, fines, and legal action. It's crucial for employers to understand and comply with both federal and state labor laws to avoid these consequences.

In summary, while it is legal under certain conditions to pay tipped employees like waiters below the standard minimum wage, there are strict requirements that must be met. Employers must ensure that tipped employees receive at least the federal minimum wage when direct wages and tips are combined, that employees retain all of their tips, and that the employees meet the criteria for being considered tipped employees.

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An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips.read more >>