Restaurant Worker Overtime: Key Rules
- Non-exempt restaurant workers (servers, bartenders, cooks, dishwashers, hosts) are entitled to FLSA overtime after 40 hours/week
- Tipped employees earning overtime: overtime is based on full minimum wage (not tipped minimum of $2.13)
- Side work: time spent on non-tipping tasks still counts toward overtime
- Tip pools: restaurant cannot pool tips to non-tipped management; only valid tip pools include tipped workers
- Training time: mandatory pre-shift training and meetings count as compensable work time
- Pre-shift setup: servers setting tables, bartenders prepping must be paid
Tipped Employee Overtime Calculation
For tipped employees: the regular rate for overtime includes the full actual wage rate (including tips), not just the tipped minimum. Federal minimum wage is $7.25/hr. If a server receives $2.13/hr base + $12/hr in tips = $14.13/hr effective rate: overtime is 1.5 × $14.13 = $21.20/hr for overtime hours. NOT 1.5 × $2.13. Many restaurants calculate overtime on the tipped minimum — this is a common and costly violation.
Federal 'dual jobs' rule: if more than 20% of a tipped employee’s work time is spent on non-tipped tasks (cleaning, food prep, side work), those hours cannot be paid at the tipped minimum — they must be paid the full minimum wage. Restaurants that schedule servers for extensive side work without proper pay violate both the minimum wage and potentially overtime rules.
Common Restaurant Overtime Violations
- Calculating overtime on $2.13 tipped minimum instead of actual effective wage
- Requiring servers to clock out but continue side work
- Not paying for mandatory pre-shift meetings or training
- Using tip pools to pay managers or non-tipped employees
- Averaging tips across multiple weeks for overtime calculations
- Scheduling split shifts without proper accounting of all hours toward overtime
Calculate Restaurant Overtime Including Tips
Enter your effective hourly rate (including typical tips) and weekly hours to find your correct overtime pay.