They are "required to", but this is rarely enforced, so they very frequently don't actually do this.
Re:The state of the restaurant industry
by beeforpork on Tuesday March 17, 2020 @06:22PM
(#22611213)
What a bizarre interpretation of 'minimum wage' and 'tip'! This means that the restaurant owner essentially collects (part of) the tips?
So you could employ a restaurant worker at $0/h and then bump them to minimum wage, because the tips will never cut it? Basically, you'd be collecting all the tips? This cannot seriously be legal!?
There's a separate "tipped employee" minimum wage, which must be paid by the employer regardless of tip income. Last I'd checked, though, it was only about $2/hr.
Restaurants are required to bump tipped employees up to the non-tipped minimum wage if the tips don't put them over it. Thus, "normal wages" in this case would be the non-tipped minimum wage.