Current through Register Vol. XLI, No. 50, December 13, 2024
Section 42-8-12 - Criteria for Determining Employer Credits Toward the Minimum Hourly Wage; No Credit for Uniforms12.1. Tip credit.12.1.1. An employer shall be entitled to take a tip credit equal to 70% of the minimum wage for all hours worked by a service employee, as long as the service employee receives tips or gratuities equal to at least 70% of the current minimum wage for all hours worked.12.1.2. When a service employee spends more than 20% of his or her time during a workweek performing duties for which he or she does not receive tips, such as cleaning or setting tables, making coffee, etc., an employer shall pay the employee at least the full minimum wage, without taking a tip credit, for the time the employee spends performing such duties.12.1.3. An employer shall be entitled to take a tip credit equal to 70% of the minimum wage for all hours worked by a dual job employee as a service employee, as long as the employee receives tips or gratuities equal to at least 70% of the current minimum wage.12.1.4. An employer shall pay a dual job employee at least the full minimum wage, without taking a tip credit, for all hours worked by the employee as a non-service employee.12.1.5. In order to take the tip credit, an employer shall have written tip records completed by the employee and, in addition to the tip records, an employer shall have a record of the time worked by a dual job employee as a service employee. 12.1.5.a. The employee's report of tips shall specify the time period in which the tips were received, the amount of cash tips received, the amount of credit or debit card tips received, the amount of tips paid out, and the amount of net tips retained by the employee. The employee shall sign and date the report.12.1.5.b. An employee may use IRS Form 4070, "Employee's Report of Tips to Employer," IRS Form 4070A, "Employee's Daily Record of Tips," or any other form that contains the information required by subsection 12.1.5.a of this section.12.1.6. An employer shall not be entitled to take a tip credit for a non-service employee.12.1.7. If an employer taking a tip credit permits tip-sharing or tip pooling, the employer shall divide the shared or pooled tips among only service employees and dual job employees working as service employees, and shall ensure that the employees individually document the amount of tips paid out.12.1.8. An employer taking a tip credit shall not be entitled to receive any shared or pooled tips.12.2. Meal credit. 12.2.1. When an employer makes meals available to an employee, if an employee completes a work day of at least eight hours worked and if the employee eats an available meal, an employer may, without a written wage assignment, deduct $4 per day as a meal credit from the employee's wages.12.2.2. If an employee completes a work day of less than eight hours but eats an available meal, an employer may, without a written wage assignment, deduct fifty cents ($.50) per hour as a meal credit from the employee's wages.12.2.3. An employer shall not deduct a meal credit if an employee does not eat a meal.12.3. Living quarters credit. 12.3.1. When living quarters are a compulsory condition of employment, an employer shall provide adequate and habitable living quarters, which includes heat, light, toilet facilities, hot and cold running potable water, and space for cooking, sleeping, and bathing.12.3.2. The employer may deduct 33% of the hourly minimum wage from the employee's wages as a living quarters credit.12.4. Uniforms. When an employer requires an employee to wear a uniform, the employer may not take a credit against the employee's wages for the cost of the uniforms or their laundering.