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Jul18

Server Wage as of July 24, 2008 in Alabama

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What is the server wage changing to as of July 24, 2008 in Alabama when the minimum wage goes to $6.55?

As you know, Alabama is one of 5 states with no state minimum wage, so the federal law applies. On July 24, 2008 the federal minimum wage increases from $5.85 per hour to $6.55 per hour. However, the federal tipped wage does not change when the minimum wage increases — it remains the same. The federal minimum wage for tipped employees is $2.13 per hour. After July 24, 2008, tipped employees must average $4.42 per hour in tips, to be paid the tipped wage. If the employee averages less, the employer must make up the difference in wages.

Many states have laws that require empoyers to pay tipped employees higher wages than the $2.13 per hour federal minimum. Alabama does not.

This entry was posted on Friday, July 18th, 2008 at 7:17 am and is filed under
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