9th Circuit agrees with DOL's interpretation of 'dual job' tip credit regulation

The Fair Labor Standards Act (FLSA) requires employers to pay most of their employees the federal minimum wage, currently set at $7.25 per hour. One provision of the FLSA, however, allows employers to pay tipped employees as little as $2.13 per hour if they receive enough tips to make up the difference. But what happens when a worker spends time on tasks that don't generate tips, such as cleaning soft drink dispensers or restrooms, but still makes enough in tips so that his total earnings equal or exceed $7.25 per hour? The 9th Circuit recently answered that question.

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