What is the maximum hourly Tip Credit allowed?

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The maximum hourly Tip Credit allowed under the Fair Labor Standards Act (FLSA) is indeed $2.13 per hour. This amount reflects the federal limit on how much employers can credit towards the minimum wage for tips received by employees, primarily those in service industries like restaurants.

It's important to note that if employers choose to take a tip credit, they must ensure that the employee's total earnings, including tips, meet or exceed the federal minimum wage. In practice, this means that if an employer pays the minimum wage of $7.25 per hour and takes the tip credit of $2.13, the employee must earn at least $5.12 in tips per hour to ensure their total is at least $7.25.

The other options listed, like $6.55, $3.72, and $5.12, do not align with the established federal guidelines for the tip credit. They might pertain to other compensatory calculations but do not represent the current allowable tip credit under federal law. Understanding the legal context of the Tip Credit is crucial for employers in ensuring compliance with wage laws and for employees to understand how their wages are calculated.

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