Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café
ID: 435194 • Letter: M
Question
Misty Cumbie worked as a waitress at the Vita Café in Portland, Oregon. The café was owned and operated by Woody Woo, Inc. Woody Woo paid its servers an hourly wage that was higher than the state’s minimum wage (which was higher than the federal minimum wage), but the servers were required to contribute their tips to a "tip pool." Approximately one-third of the tip-pool funds went to the servers, and the rest was distributed to kitchen staff members, who otherwise are not considered tipped employees. Misty sued the employer and alleged that the tip-pooling arrangement violated the minimum wage provisions of the Fair Labor Standards Act. Does it? Explain.
5. The government can establish a lower minimum wage for employees who make tips, but all employees are (entitled/ not entitled)to receive at least the minimum wage.
6. If an employee who makes tips earns less than the minimum wage, the employer ( is/ is not)required to make up the difference so that the employee makes at least minimum wage.
7. In this case, the servers earned a wage (higher/ the same as/ lower)than the state minimum wage, which was (higher/ the same as/ lower) than the federal minimum wage.
8. If the servers donate all of their tips to the "tip pool" and don’t receive any back, they (do/ do not)earn at least the minimum wage.
9. If the servers donate all of their tips to the "tip pool" and receive a portion of those back, they earn ( more than/ the ssame as/ less than) the minimum wage.
Explanation / Answer
No, the tip pooling arrangement does not violate the minimum wage provisions of the Fair Labor Standards Act. As it is a restaurant industry and tipping is a part of it and FLSA does not restrict employers from making a fair distribution arrangement of the tips given to some employees if the employees are being paid the minimum wage as per FLSA by the employer. It is mentioned here that the minimum wage paid by Woody Woo is more than the minimum wage of FLSA and the tip pooling and distribution act does not lower their hourly wages to the state's minimum wage.
5. The government can establish a lower minimum wage for employees who make tips, but all employees are entitled to receive at least the minimum wage.
6. If an employee who makes tips earns less than the minimum wage, the employer is required to make up the difference so that the employee makes atleast the minimum wage.
7. In this case, the servers earned a wage higher than the state minimum wage which was higher than the federal minimum wage.
8. If the servers donate all of their tips to the "tip pool" and don't receive any back they do earn at least the minimum wage.
9. If the servers donate all of their tips to the "tip pool" and receive a portion of those back, they earn more than the minimum wage.