Tips - Maryland

Summary of difference between federal and state regulations

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.

An employer may include, as part of the wage of an employee:

• an amount that the employer sets to represent the tips of the employee; or
• if the employee or representative of the employee satisfies the Commissioner that the employee received a lesser amount in tips, the lesser amount.

The tip credit amount that the employer may include may not exceed 50 percent of the minimum wage established under Maryland Labor and Employment Code §3-413 for the employee, less $3.63.

State

Contact

Maryland Department of Labor, Licensing and Regulation Division of Labor and Industry

Regulations

http://www.lexisnexis.com/hottopics/mdcode/

Federal

Contact

Wage and Hour Division

Regulations

29 CFR 516.28