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Questions about Overtime & Tips...

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gbarb18

Junior Member
What is the name of your state (only U.S. law)? MN

My wife is a Manager at a coffee shop. There are 2 locations and she manages one. The one she manages typically only has 1 person working at a time. They are requiring her to work 50-60 hours a week at the shop, she works a a barista behind the counter by herself the entire time. They call her a manager, but she doesn't manage any people, she doesn't do the scheduling, she doesn't do any of the accounting, etc...

They are paying her ~$28,000 per year salary.

They claim she's not eligible for overtime because she's salary. Is that true in this case?

Minnesota has it's own overtime requirements which state: "No employer may employ an employee for a workweek longer than 48 hours, unless the employee receives compensation for employment in excess of 48 hours in a workweek at a rate of at least 1-1/2 times the regular rate at which the employee is employed." 177.25

Also, she is not allowed to keep any tips received although she is the only one serving the customers directly when she works because she is the only one working. The tips go into a tip pool with the tips from the other location and then are split among the hourly employees. So the majority of tips that come into her location are given to employees that work at the other location.

Because of how much they are making her work to earn her salary and because hourly employees are making tips, hourly employees often make more per hour than my wife does.

This doesn't feel right to me, but we don't know how to approach it.

Any direction or advice would be appreciated.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? MN

My wife is a Manager at a coffee shop. There are 2 locations and she manages one. The one she manages typically only has 1 person working at a time. They are requiring her to work 50-60 hours a week at the shop, she works a a barista behind the counter by herself the entire time. They call her a manager, but she doesn't manage any people, she doesn't do the scheduling, she doesn't do any of the accounting, etc...

They are paying her ~$28,000 per year salary.

They claim she's not eligible for overtime because she's salary. Is that true in this case?

Minnesota has it's own overtime requirements which state: "No employer may employ an employee for a workweek longer than 48 hours, unless the employee receives compensation for employment in excess of 48 hours in a workweek at a rate of at least 1-1/2 times the regular rate at which the employee is employed." 177.25

Also, she is not allowed to keep any tips received although she is the only one serving the customers directly when she works because she is the only one working. The tips go into a tip pool with the tips from the other location and then are split among the hourly employees. So the majority of tips that come into her location are given to employees that work at the other location.

Because of how much they are making her work to earn her salary and because hourly employees are making tips, hourly employees often make more per hour than my wife does.

This doesn't feel right to me, but we don't know how to approach it.

Any direction or advice would be appreciated.
It does sound off...particularly about the tips. I suggest that your wife contact the DOL and discuss the issue with them.
 

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