FLSA Wage & Hour Compliance

Wage and hour compliance plan covering minimum wage, tip credits, commission structures, overtime, and recordkeeping for salon employees.

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What this document covers

The FLSA sets federal minimum wage, overtime, and recordkeeping standards. Salons face unique challenges: tip credit calculations for stylists, commission-based pay structures, split-shift issues, booth rental misclassification, and tracking hours for employees who work across tipped and non-tipped duties. This plan ensures your salon's pay practices comply with federal law.

Key sections included

Minimum wage and tip credit calculations
Commission-based pay compliance
Overtime calculation for tipped employees
Dual jobs doctrine (tipped vs. non-tipped duties)
Recordkeeping requirements
Pay stub requirements
Youth employment restrictions
Booth rental vs. employment wage obligations

Frequently asked questions

Can I use tip credit for my stylists?

Yes, if you meet all FLSA requirements: pay at least $2.13/hr, tips bring total to $7.25/hr minimum, employee retains all tips (except valid tip pool), and you provide proper notice.

Does time spent cleaning count as non-tipped work?

Under the dual jobs doctrine, if a tipped employee spends more than 20% of their time on non-tip-producing duties (cleaning, laundry, setup), the tip credit may not apply to that time.

Document details

Legal basis: Fair Labor Standards Act (29 USC §201 et seq.); 29 CFR Parts 516, 531, 778, 785
Enforced by: U.S. Department of Labor, Wage and Hour Division
Penalty for absence: Back wages plus equal amount in liquidated damages. Willful violations: $2,050 per violation. Repeat violations: up to $11,162 per violation.
Category: Employment & HR

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