[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR531.51]

[Page 171-172]
 
                             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. 531.51  Conditions for taking tip credits in making wage payments.

    The wage credit permitted on account of tips under section 3(m) may 
be taken only with respect to wage payments made under the Act to those 
employees whose occupations in the workweeks for which such payments are 
made are those of ``tipped employees'' as defined in section 3(t). Under 
section 3(t), the occupation of the employee must be one ``in which he 
customarily and regularly receives more than $20 a

[[Page 172]]

month in tips.'' To determine whether a tip credit may be taken in 
paying wages to a particular employee it is necessary to know what 
payments constitute ``tips,'' whether the employee receives ``more than 
$20 a month'' in such payments in the occupation in which he is engaged, 
and whether in such occupation he receives these payments in such amount 
``customarily and regularly.'' The principles applicable to a resolution 
of these questions are discussed in the following sections.