$2.13 an hour plus $150 in tips for 40 hours: does my employer owe me?

$2.13 an hour plus $150 in tips for 40 hours falls short of the $290 that 40 hours at the $7.25 federal minimum pay. Your $85.20 in cash wages and $150 in tips leave a $54.80 difference your employer owes you, so you earn $7.25 an hour before taxes.

The tip credit is the part of the minimum wage your tips cover: at most $5.12 an hour ($7.25 − $2.13), never more than the tips you got, and checked over each workweek. Your employer must tell you about it before taking it (DOL Fact Sheet #15).