12/02/2026
Restaurant owners beware:
The FLSA requires that employees be informed by their employer that the employer intends to treat tips as satisfying a portion of the minimum wage. 29 USC § 203(m)
The duty to inform is an affirmative duty placed upon the employer, which cannot be satisfied by the mere hope or assumption that employees will either divine their employer's intentions or figure out their statutory entitlements from the way in which the employer conducts its business. Perez v. Lorraine Enterprises, Inc., 769 F. 3d 23, 31(1st. Cir. 2014)
Remember: It is the employer's burden to show that it has satisfied all the requirements for tip-credit eligibility. A failure to satisfy any of these requirements exposes the employer to liability for wages owed as well as liquidated damages. 29 USC §§ 215-16
