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['Wage and Hour']
['Tips']
04/18/2024
State Info
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There are certain instances where employers can pay employees at a rate lower than the minimum hourly wage specified by the Fair Labor Standards Act. The most common instance pertains to an employee who earns tips. The employer can deduct the amount of the tips (but only up to a certain maximum amount) from the hourly wage.
Maine Revised Statute 26 §663 and §664 allow a tip credit of 50% of the minimum hourly wage for service employees who regularly receive at least $20 in tips per month.
