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Employment Law/tip-out when base salary is above minimum wage


I recently began a new job here in NC as a server in an upscale lodge.  I have been in the service industry for years and understood that when being paid minimum wage my employer can not require me to tip out more than 15%.  
In this case, they are paying me $9.00 per hour as a base salary but I was disappointed to find after my first paycheck that the tip pool is taking 62% and I am receiving only 38% of cash tips earned.  
Are they allowed to take more of my tips because they are paying me over minimum wage?  If so what is the percentage (if any) that they can take when paying me a higher wage?   
Thank you so much for your time Shirley.

I do not have a payroll with Tipped Wages. However, I have found some good resources for you on the internet which may help you.

From what I am reading they are paying you 9.00 but they are using tip money to do so. They can deduct a tip credit of up to 5.12 for each hour as long as you are earning at least minimum wages and if you are paid 9.00 than they can recover their 5.12 tip credit from the tips you earn. I am not an expert on tips I have no tipped payrolls. This is from what I have been reading above. of more answers I would suggest you contact the Department of Labor listed below and find out from them the exact rulings for North Carolina tip pooling.

N.C. Department of Labor
Wage and Hour Bureau
1101 Mail Service Center
Raleigh, NC 27699-1101
(919) 807-2796 or (toll-free NC only) 1-800-NC-LABOR
Web site:


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Shirley McAllister, CPP, PHR


I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).


30 years in Payroll and Human Resources

SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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