What Records Must Be Maintained for Tipped Employees?

Previously, we looked at the basic wage and hour records which must be kept by an employer. We also examined the consequences for an employer's failure to maintain those records. Today, we will look at the additional records which must be maintained for tipped employees under the FLSA and IMWL.

Tipped employees under federal and state wage laws are those workers that receive part of their wages in tips. Often, these employees are paid using a tip credit meaning that the employer pays direct wages to the employer in an amount less than the minimum wage and uses tips to make up the difference. While common, taking a tip credit requires the employer to comply with federal and state tip credit rules and keep an additional set of records for each tipped employee.

Records to be kept for tipped employees under FLSA and IMWL

  • A symbol, letter or other notation on the pay records identifying each employee whose wage is determined in part by tips.
  • A report from each employee of the amount of tips received (FLSA requires a weekly or monthly report; IMWL requires a daily report).
  • The amount of the tip credit taken by the employer on each employee i.e. the difference between the direct wages paid to each employee and the applicable minimum wage.
  • Hours worked each workday by the employee in any non-tipped occupation, and the total daily or weekly straight-time earnings for such hours.
  • Hours worked each workday in an occupation in which the employee received tips, and the total daily or weekly straight-time earngins for all such hours.

If you are a restaurant server or another type of tipped employee that would like to learn more about your rights, contact our Chicago wage and hour attorneys today for a free consultation.