Texas Minimum Wage Increase Set For July 24

The minimum wage rate will increase to $6.55 on July 24, 2008. The cash wage for tipped employees will remain at $2.13, however the overtime rate for tipped employees will increase. The following is the calculation used for computing the overtime rate for tipped employees:

7/24/08 New Min. Wage 6.55

Time and a half X 1.5 Overtime rate = 9.825

New Min. Wage 6.55 Minus tipped wage* - 2.13 Tip Credit = 4.42

Regular OT Rate 9.825 Minus Tip Credit - 4.42 = 5.405

Rounded 2008 Tipped Employee Overtime Rate = $5.41

You must round up, so the 2008 tipped employee overtime rate is $5.41.

* The tipped wage is the amount you pay your servers during regular hours. If you pay more than $2.13 during regular hours to your servers, use that amount in the overtime calculation.

Your workplace posters must be updated to reflect the increase in the minimum wage. The new posters are available from TRA. You may place your order by going to our web site at www.restaurantville.com , by calling 1-800-395-2872.

If you have any questions, please contact Glen Garey at 800-395-2872.

• Bookmark :
• Digg
• del.icip.us
• Stumbleupon
• Redit it