May an employer claim the minimum wage tip credit for employees who do not spend all their time waiting tables or performing other tip-producing activities?

Author: XpertHR Editorial Team

When an employee is employed by one employer in both a tipped and a non-tipped occupation, such as an employee employed both as a maintenance person and a waitperson, the tip credit is available only for the hours spent by the employee in the tipped occupation. Nevertheless, a DOL regulation permits an employer to take the tip credit for some time that the tipped employee spends in duties related to the tipped occupation (known in the industry as "sidework"), even though such duties are not by themselves directed toward producing tips.