What does an employer have to pay to a hourly employee?

  • If an hourly employee does completely non-tipped work, that employee is entitled to be paid minimum wage.
  • The minimum wage can vary by state.
  • If the hourly employee works more than 40 hours in a given week, the employee generally has to be paid overtime. That is time and a half.
  • The requirements are a little bit different for hourly employees who do tipped work.
  • The employer can pay tipped wages as long as the tipped wage plus the tips that the employee makes meets or exceeds the regular minimum wage.
  • In order to pay the tipped wage, the employer is also required to explain to the employee and give the employee notice that this is what the employer intends to do.
Cohn, Lifland, Pearlman, Herrmann and Knopf LLP