McOmber McOmber & Luber, P.C.

Business & Employment Lawyers Red Bank & Marlton New Jersey

732-842-6501

Can New Jersey Employers Take Tip Credits?

New Jersey allows employers to take tip credits, therefore employers may pay less than minimum wage as long as employees’ tips make up the difference. If the employer’s pay and the employee’s tips together do not equal minimum wage, the employer must pay the employee the amount necessary to equal at least minimum wage for each hour worked.

Related FAQs

  • What Are Your Rights as a Restaurant Employee?

    About 34% of workers in the restaurant sector quit their jobs or want to do so. Even though this is an excellent way to get experience and make money, working at a restaurant is no walk in the park. The work environment is quite stressful, and the wages aren’t the best.

    To make sure you’re being treated properly and lawfully, it’s crucial to be aware of the rights you have as a restaurant employee. Some restaurants take part in unlawful behavior that infringes on the rights of employees to make more money.

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  • What Happens to Employee Tips?

    The truth is that it depends on the restaurant that you’re in. Different restaurants have varying tipping policies.

    Some restaurants may have pooled tips, while others may have direct tips. These two are the most popular options for restaurants around the country.

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  • What’s a Tipped Employee?

    A tipped employee is a legal term that’s used to describe a career field that relies on tips in a major way. This is someone who receives at least $30 or more per month in tips. These kinds of jobs are almost exclusively in the service industry.

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  • What’s the Tipped Minimum Wage?

    The tipped minimum wage for New Jersey is $5.26 per hour. As you can see, this is significantly lower than the standard minimum wage in the state. However, it’s much higher than most other states in the US.

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  • Can Employers Change Wages?

    Under state law, employers are entitled to change their employees’ wages. They need to give you advance notice and it can’t be done retroactively. However, they may not reduce your pay below the state minimum wage if you are in a qualifying job.

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  • How Many Hours Should You Work Each Week?

    Under the new legislation, a standard working week in most jobs is 40 hours. This means that you are entitled to overtime pay for every minute you work over 40 hours.

  • Are Noncompetes Enforceable? 

    While many may view noncompetes as unethical and questionable, there is some good news. Just because an employee breaks their noncompete does not mean they are in peril of consequences. A court will decide whether to uphold noncompete clauses depending on the situation. 

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  • Which Industries Use Noncompetes? 

    Noncompetes affect a wide range of industries. These can be high-level employees such as engineers and executives. But it can also affect smaller-scale jobs such as hairstylists and workers in a warehouse. 

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  • Can I be disciplined or terminated if I refuse to be available while on vacation?

    You need to review your company’s policies and procedures for taking vacation days. If you believe you are being singled out or treated unfairly compared to other employees who take vacation days, your employer may be in breach of contract or in violation of federal or state law.

  • Can my employer call me during vacation or ask me to do work while I’m on vacation?

    If you are an hourly, non-exempt employee and your employer contacts you during vacation, your employer will likely be required to pay you for the time you spend working. An hourly, non-exempt employee is someone who is paid an hourly wage and is entitled to minimum wage and overtime for working over 40 hours per week.

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