Minimum Wage & Overtime
The minimum wage increased on July 24th, 2007.
The minimum wage rate will increase to $5.85 on July 24, 2007, $6.55 on July 24, 2008 and $7.25 on July 24, 2009. The cash wage for tipped employees will remain at $2.13, however the overtime rate for tipped employees will increase. The following is the calculation used for computing the overtime rate for tipped employees:
2007 Min. Wage $5.85
Time and a half X 1.5
Regular overtime rate =8.775
2007 Min. Wage $5.85
Minus tipped wage* - 2.13
Tip Credit =3.72
Regular OT Rate $8.775
Minus Tip Credit - 3.72
Tipped OT rate = 5.055
You must round up, so the 2007 tipped employee overtime rate is $5.06. The rounded overtime rate for tipped employees in 2008 is $5.41 and for 2009 it is $5.76.
* The tipped wage is the amount you pay your servers during regular hours. If you pay more than $2.13 during regular hours to your servers, use that amount in the overtime calculation.
Your workplace posters must be updated to reflect the increase in the minimum wage. The new posters are available from Shop TRA or you may place your order by calling 1-800-395-2872
The minimum wage rate will increase to $5.85 on July 24, 2007, $6.55 on July 24, 2008 and $7.25 on July 24, 2009. The cash wage for tipped employees will remain at $2.13, however the overtime rate for tipped employees will increase. The following is the calculation used for computing the overtime rate for tipped employees:
2007 Min. Wage $5.85
Time and a half X 1.5
Regular overtime rate =8.775
2007 Min. Wage $5.85
Minus tipped wage* - 2.13
Tip Credit =3.72
Regular OT Rate $8.775
Minus Tip Credit - 3.72
Tipped OT rate = 5.055
You must round up, so the 2007 tipped employee overtime rate is $5.06. The rounded overtime rate for tipped employees in 2008 is $5.41 and for 2009 it is $5.76.
* The tipped wage is the amount you pay your servers during regular hours. If you pay more than $2.13 during regular hours to your servers, use that amount in the overtime calculation.
Your workplace posters must be updated to reflect the increase in the minimum wage. The new posters are available from Shop TRA or you may place your order by calling 1-800-395-2872
