Pub. L. 89-601, tit. I, sec. 101
tips
tips Sec. 101. (a) Section 3(m) of the Fair Labor Standards Act of 1938 is amended by adding at the end thereof the following new sentence: “In determining the wage of a tipped employee, the amount paid such employee by his employer shall be deemed to be increased on account of tips by an amount determined by the employer, but not by an amount in excess of 50 per centum of the applicable minimum wage rate, except that in the case of an employee who (either himself or acting through his representative) shows to the satisfaction of the Secretary that the actual amount of tips received by him was less than the amount determined by the employer as the amount by which the wage paid him was deemed to be increased under this sentence, the amount paid such employee by his employer shall be deemed to have been increased by such lesser amount.” (b) Section 3 of such Act is amended by adding at the end thereof the following new subsection: “(t) ‘Tipped employee’ means any employee engaged in an occupation in which he customarily and regularly receives more than $20 a month in tips.”