Author Topic: PH drivers sue for not taking home minimum wage?  (Read 1224 times)

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Offline Jet_deck

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Offline gabaghool

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Re: PH drivers sue for not taking home minimum wage?
« Reply #1 on: May 15, 2014, 01:05:15 PM »
You know, I gotta check, but I BELIEVE, IF the owner is not paying minimum wage because it is a tip position.....and the employee does NOT make at least minimum wage, they are legally obligated to make up the difference..... I not sure because so few tipped position don't pay well.  The servers that I know, the best ones, make a grand a week....in about 30 hours.   Delivery guys make way less, but still, the vast majority make over 12 bucks.........if they are making less then minimum they either stink, theres not enough delivery business, or the store has too many drivers.....but i highly doubt the last scenerio.

Sounds like the owner, in this case, refused to make up the difference.

Offline Gags

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Re: PH drivers sue for not taking home minimum wage?
« Reply #2 on: May 15, 2014, 04:59:49 PM »
This will be interesting!

The law, as I found it on this link, only states that wage + tips must be at least the same as the federal min wage or else the employer must make up the difference.  It mentions nothing of the costs incurred to the employee to perform the job.  I'm no CPA, so I'm not sure if it applies to an employee or only if you're an independent contractor, but I think you'd have to factor in tax considerations for the gas and vehicle costs, yah?  So let's say the employee spends $10k on these costs, claims them on taxes, and gets a credit for 25% of the costs.  Did that $2500 make up the difference that they were underpaid?

I'd be curious to know if that's a factor...

Federal Law
As of 2013, the federal minimum wage is $7.25 per hour. Employers may claim a tip credit for employees who regularly earn more than $30 per month in tips. However, the employer must pay the wait staff at least $2.13 per hour as a cash wage. If the employee’s cash wages and tips combined are less than $7.25 per hour, the employer is legally obligated to pay the employee the difference.

States Prohibiting Tip Credit
Some states do not allow employers to take a tip credit. This means that the minimum hourly wage for employees who receive tips is the same as the rate for employees who do not earn tips. Among the states prohibiting tip credits are Alaska, Oregon, California, Minnesota, Washington, Montana and Nevada. Several of these states also have minimum hourly rates that are higher than the federal rate. In 2013, the minimum hourly rate in Alaska was $7.75, and it was $8 in California. Montana set a minimum wage of $7.65 per hour for all businesses grossing more than $110,000 annually. Minimum wage is $8.95 in Oregon and $9.19 in Washington. Nevada’s minimum wage is the same as the federal, but if the employer does not provide health insurance, the employee must receive at least $8.25 per hour.
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