Question

If an employee's tips combined with the cash wage is inconsistent with the minimum hourly wage, ______.

A. the employee is entitled to work for a reduced number of hours
B. the employer must make up the difference with certain conditions
C. the federal government must make up the difference
D. the employee is entitled to be paid for the inconvenience caused along with the difference, with certain conditions
E. the employer is not liable to pay the difference if he or she reduces the number of working hours for the employee

Answer 1

B. the employer must make up the difference with certain conditions.

Step-by-step explanation:

If an employee's tips combined with the cash wage is inconsistent with the minimum hourly wage, the employer must make up the difference so that the employee receives at least the minimum wage for all hours worked. This is known as the "tip credit" provision of the Fair Labor Standards Act (FLSA) in the United States.

Under the tip credit provision, employers can pay a lower hourly wage to tipped employees, such as servers or bartenders, as long as the employee's tips bring their total earnings up to at least the minimum wage. However, if the employee's tips are insufficient to meet the minimum wage, the employer must make up the difference.

The FLSA also sets certain conditions for the use of the tip credit, including informing employees of their rights and maintaining accurate records of all tips received and wages paid.

In summary, if an employee's tips combined with the cash wage are inconsistent with the minimum hourly wage, the employer is required to make up the difference to ensure the employee receives at least the minimum wage.