Configuring Compliance with Wage and Tip Laws

1. In Reporting and Analytics, click Labor, click Human Resources, click Admin, and then click Wage and Tip Law.
2. Enter the Minimum Wage as required by law.
3. If federal or state law includes maximum tip credit restrictions, enter one or both of the Maximum Tip Credit Amount and Maximum Tip Credit Percentage.

   A tip credit is the percentage or monetary amount set by federal or state law that is deducted from the minimum wage of tip-applicable employees.

   For example, state law sets a $6.15 minimum wage and allows up to a 50 percent tip credit if the employee receives enough tips to earn the minimum wage amount for each hour. If the employee’s combined earnings (tip plus wage after tip credit adjustments) average out to being less than the minimum wage, the employer must make up the difference.

4. If federal or state law sets a separate minimum wage for tipped jobs:
   1. Select Minimum Wages for tipped jobs.
   2. Enter the minimum wage for jobs that qualify for tips. This value overrides the standard minimum wage.
   3. Enter the minimum wage for when an employee becomes eligible for overtime pay while working a job that qualifies for tips. The weighted average overtime formula uses the value entered in this field instead of the minimum wage entered in Step 4b. Weighted Average Overtime with Tip Credit contains further information regarding the calculation of overtime pay with tip credit.
5. Select the starting date for law, and then click Save.