Tip Credit and Tip Pooling Provisions of the Fair Labor Standards Act

Abstract

[Excerpt] The Fair Labor Standards Act (FLSA), enacted in 1938 (P.L. 75-718), is the federal legislation that establishes the general minimum wage that must be paid to all covered workers. At present, the vast majority of workers are covered by the minimum wage provisions of the FLSA. These provisions have been amended numerous times since 1938, typically for the purpose of expanding coverage or raising the wage rate. The most recent change was enacted in 2007 (P.L. 110-28) to increase the minimum wage to $7.25 per hour by July 2009.