Fundamental Payroll Certification (FPC) 2025 – 400 Free Practice Questions to Pass the Exam

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What was the effective date for the reduction in minimum wage for tipped employees mentioned as tip credit?

01/01/09

07/24/09

The effective date for the reduction in minimum wage for tipped employees, referred to as the tip credit, is significant because it marks a transition in how tipped workers are compensated based on tips they receive. The law that established the tip credit allowed employers to pay tipped employees a lower base wage, provided that their tips made up the difference between this lower wage and the standard minimum wage.

The date identified is 07/24/09, which aligns with legislative changes that were made regarding the treatment of tipped employees under federal law. Understanding this date is crucial for payroll professionals and employers to ensure compliance with labor laws governing wages, including proper calculation of wages and tips.

It's important to recognize this effective date in the context of broader changes affecting tipped employees and the payroll landscape at that time.

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12/31/10

03/15/08

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