Originally Posted by
opushomes
Gaucho
Actually some states allow payment of less than minimum wage as the tips are imputed income to bring the overall wage over the minimum.
Favorite audit victims on federal tax audits are waitpersons (we must be PC) who do not declare enough tip income.
Our laws are as screwy as yours and they are different in all 50 states.
Just to clarify, there is a federal minimum wage, with a reduced level of $2.13 an hour for tipped employees, with the previously mentioned caveat that with tips, the income has to be at least the standard min wage. Although in theory, employers could pay the reduced wage to other tipped employees, it is mainly restaurant wait staff who get paid at that level.
In addition, many, but not all, states have additional minimum wage laws. See
here for more details.