[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR531.50]

[Page 171]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 531_WAGE PAYMENTS UNDER THE FAIR LABOR STANDARDS ACT OF 1938
--Table of Contents
 
                        Subpart C_Interpretations
 
Sec. 531.50  Statutory provisions with respect to tipped employees.

    (a) With respect to tipped employees, section 3(m) provides:

In determining the wage of a tipped employee, the amount paid such 
employee by his employer shall be deemed to be increased on account of 
tips by an amount determined by the employer, but not by an amount in 
excess of 50 per centum of the applicable minimum wage rate, except that 
in the case of an employee who (either himself or acting through his 
representative) shows to the satisfaction of the Secretary that the 
actual amount of tips received by him was less than the amount 
determined by the employer as the amount by which the wage paid him was 
deemed to be increased under this sentence, the amount paid such 
employee by his employer shall be deemed to have been increased by such 
lesser amount.

    (b) ``Tipped employee'' is defined in section 3(t) of the Act as 
follows:

Tipped employee means any employee engaged in an occupation in which he 
customarily and regularly receives more than $20 a month in tips.