Instructions for Tipped Employees Acknowledgement

Effective May 5, 2011The U.S. Department of Labor recently amended its tip credit notice regulations.  These regulations require tipping establishments to have all tipped employees sign a form to acknowledge that the employer is taking a tip credit in order to meet minimum wage requirements.   

Two versions of this form are available on our website, www.argentpayroll.com, under Forms and Links page, Employee Forms section.

These forms can be downloaded and edited.  Both forms contain the standard sub-minimum wage of $2.13 per hour and the tip credit amount of $5.12 per hour.  Employers in states with minimum wage requirements higher than $7.25 must adjust the tip credit amount of $5.12 to the appropriate number.

If tip pooling is required, the form for tip pooling must be used and the percentage of the tip pool must be inserted in the 4th paragraph.

Both forms must be completed to indicate the person to whom the form should be returned and the person to ask any questions.

Once these forms are completed, employers must maintain them with employee records.  If these forms are not on file, the department of labor could disallow the tip credit and require the employer to pay employees the amount of the tip credit.

Any questions can be directed to payroll@argentpayroll.com.