HAR §12-20-11. Payment of wages to tipped employees

(a) Where employees practice tip-splitting, each employee shall be considered tipped only to the extent of the proportionate share received and retained by each. Similarly, where an employer in furtherance of a tip-pooling arrangement redistributes the tips to the employees upon some basis mutually agreed by the employees themselves, only the amounts actually received and retained by each individual shall be considered tips. (b) Where an employee is employed in two or more different occupations for the same employer, tip credit may be taken only for hours worked in the occupation in which the employee customarily and regularly receives more than $20 a month in tips. (c) The employer shall notify all employees in writing at the time of hire if tip credit is to be used. The employer's policy on tip credit may be changed if the change is intended to be permanent and not designed to evade the requirements of the law. Notification of changes shall be given to the employees in writing or through a posted notice prior to the commencement of the pay period. (d) The regular rate of a tipped employee who works overtime shall be determined as provided in section 387-3, Hawaii Revised Statutes. Tips received in excess of the tip credit shall not be included in the regular rate. (e) An employee who customarily and regularly receives more than $20 a month in tips remains a tipped employee even though sickness, vacation, or the like reduces the amount of tips received in a particular month to $20 or less. The employee must actually receive more than $20 a month in tips and shall not be considered a tipped employee solely because of employment in an occupational group which has a record of receiving more than $20 a month in tips. An employee may qualify as a tipped employee in the initial or terminal month of employment provided that tips received in a particular week or weeks of a month is at a rate in excess of$20 a month. [Eff. Oct. 2, 1981] (Auth: HRS §387-11) (Imp: HRS §§387-1, 387-2, 387-3) -13-