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LEGAL INSIGHTS / Estate Planning

Servers Paid Below Minimum Wage Due to Employer Law Violations

There’s a common misconception when it comes to servers tips and wages.

Many restaurant patrons (and even servers themselves) believe that the law only requires employers to pay servers $5/hr (or some other egregiously low number – I’ve heard people claim servers only make $2 or $3 an hour…etc).

While some servers may only take home $5, they’re supposed to be taking home at least $15/hr.. and any other arrangement is unlawful in Connecticut.

Some of you might balk at that assertion. But it’s true. Servers aren’t supposed to be making anything less than the current minimum wage in Connecticut of $15/hr (set to increase in January 2024).

Underpaying servers has unfortunately become a mainstream practice and most people don’t even realize that it’s unlawful.

We’ve been sold this narrative that the law punishes hard working servers and “tradition” is to blame. Consequently, we are all guilted into paying hefty tips to clear our conscious.

We the patrons are blamed for the underpayment of servers wages – when in reality – it is the employer who is at fault for breaking the law.

Whats the bottom line?

The bottom line is this – any server employed at a restuarant is legally supposed to be guaranteed $15/hr. (set to increase in January 2024).

The law says that employers can pay a lower minimum wage… as long as the servers tips make up the difference.

However, if there’s a slow night and a server doesn’t make any tips at all… An employer CANNOT pay less than the minimum wage – they are legally required to pay a full $15/hr if a server can’t make up the difference in tips.

Legal authority:

Connecticut Tip Credit Statute

Agency Regulations

Penalties

An employer who does not ensure that you receive the Connecticut minimum wage can be charged with a Class D Felony, and be fined up to $10,000.

You can also sue them for your unpaid wages.

Employers are also required to keep detailed records and provide substantial proof that their employees are being ensured minimum wage.

Practical Issues

Many people are understandably discouraged from bringing legal actions against their employers because of the obvious threat of losing their job or facing any backlash.

But just know that if you’re a server and you are not taking home minimum wage in Connecticut, you have a cause of action and the right to be compensated.

Also, as a patron… recognize that although tips are generally a good thing… why are we subsidizing the payrolls of employers who regularly break the law and do not pay minimum wage?

I’m happy to tip, and I always tip 20 – 30%… But it is infuriating that servers aren’t even guaranteed the minimum wage, not because of policy reasons, but because of stingy employers.

So, I think employers should get a lot more heat for breaking the law. This is a large scale issue that’s been normalized.