Is this illegal?

So I work at an establishment that is kind of like a serving job. For years now I got paid $9.61 but just recently they lowered our wage to $5.65 because we get “tips.” Is it illegal for them to lower our wage without signing anything, and is it illegal in the state of Michigan to not pay us minimum wage if our tips don’t meet the minimum wage criteria? They told us that even if we don’t make enough tips, they still won’t pay us minimum wage.

10 Answers

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  • 1 year ago

    They have the right to lower your wage if they want to, but it is illegal for them to refuse to pay you if the amount that you make from tips does not meet the minimum wage. They are legally obligated to make up the difference if you do not make enough from tips.

  • 1 year ago

    Yes, they can lower your wage if you receive tips. It is legal for them to lower your wage without signing anything. However, if your hourly wage and tips do not add up to at least minimum wage, they MUST make up the difference according to law.

  • Ti
    Lv 7
    1 year ago

    Yes, your wage can be lowered with proper notice. You don’t have to sign anything (US laws favor the employer over the employee). If your tips don’t reach your minimum wage for the pay period, the employer has to make up the difference. Paying someone less than the legal minimum is illegal.

  • 1 year ago

    No, it is not in any way illegal, as long as that pay plus the tips work out to minimum wage for any given check. IF you don't end up with MW with the tips, they are obligated to make up the difference.

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  • 1 year ago

    Unless you have a contract, which you presumably do not have, your signature is not necessary. They can do what they like in that regard and you can threaten to quit in hopes of getting your pay back but ultimately, your only options are to stay or quit.

  • 1 year ago

    In Michigan employers can make reductions in hourly rate to below the minimum wage for tipped employees but you MUST receive at least the minimum wage including tips. If the tips don't make that so, they have to pay you the difference to ensure at least the minimum wage is paid.

  • 1 year ago

    Yes, this is illegal without any written contract form or singing form. You can take legal action.

  • Anonymous
    1 year ago

    I think these comments may be misleading. Yes, if you make anything less than minimum wage then your employer is breaking the law. HOWEVER, if you're making, say $5 an hour, but if your tips make up for the difference for the amount if you were to be making minimum wage, then it is not illegal. Most employers automatically make the adjustment to where if you don't meet the minimum amount for the hours work with all of your tips included, they add money to your check.

  • Anonymous
    1 year ago

    They can do anything in America the land of the free. If they feel they dont want to pay, its still fine, because, yes you guessed it, its America and anything goes

  • Anonymous
    1 year ago

    As long as you make minimum wage including

    the tips yes. If you dont make the minimum wage for the total hours you work your employer will have to give you the difference so you do earn the minimum wage.

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