CINCINNATI (Cincinnati Business Courier) - Agave & Rye has agreed to settle a case brought by current and former employees claiming the restaurant company failed to pay them an appropriate minimum wage in violation of federal law.
The case centers around tip credits and the “80/20 rule.” Employers must pay the prevailing minimum wage ($10.10/hour in Ohio), but an exemption exists for employees who receive tips.
Employers can pay tipped employees as little as half the minimum wage and credit their tips to make up the difference, so long as the employee does end up making at least the minimum wage. In Ohio, as long as an employee makes at least $30 in tips per week, they can be paid as little as $5.05/hour in wages.
Read the full story from the Cincinnati Business Courier.
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