$500 in tips over 40 hours is how much an hour?

$500 in tips over 40 hours is $12.50 an hour in tips. With the $2.13 cash wage, the 40 hours pay $85.20 more, so the week comes to $585.20 before taxes, or $14.63 an hour, above the $7.25 federal minimum.

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).