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Is being paid below minimum wage illegal?

Asked Nov 15, 2011, 12:58 AM — 3 Answers
I'm just curious, but a while ago I had a job as a delivery driver and I was paid below minimum wage. I've heard it was illegal, but they told me it was because I get tips so I accepted it. After working there for a while, I didn't make a lot of money on tips (it usually all went in my gas tank, anyway). I ended up quitting the job, but I asked my friend, who was also a delivery driver for a different company, how much he made and he said minimum wage plus tips. I was just wondering if I was being ripped off?

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ScottGem's Avatar
ScottGem Posts: 57,988, Reputation: 28100
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#2

Nov 15, 2011, 03:11 AM


Yes, it is legal to pay at a rate below the minimum wage if tips make up a portion of your income.
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Fr_Chuck's Avatar
Fr_Chuck Posts: 72,597, Reputation: 37026
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#3

Nov 15, 2011, 05:13 AM


And tips are reported as income. But agree yes it is, Remember if you are paying for your own gas, and not getting a credit for gas or milage, you are making a lot less than min wage even if you get paid min wage.
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Inaru's Avatar
Inaru Posts: 65, Reputation: 10
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#4

Nov 15, 2011, 01:04 PM
Thanks, I was just wondering because I never made more than $10 in tips and there was even one night I walked away with a "whopping" 25 cents.
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