Kansas's lower tipped threshold means more workers qualify for the $2.13 cash wage.
Kansas law sets a lower monthly tip threshold for employees to be classified as "tipped" compared to federal standards. While federal law requires employees to customarily and regularly receive more than $30 per month in tips, Kansas law specifies a threshold of $20 per month. This distinction expands the pool of workers who can be paid the lower cash wage of $2.13 per hour, with employers relying on the tip credit to meet the state's $7.25 minimum wage.
KS Tipped Employee Classification
KSA 44-1203 defines tipped employees as those who customarily and regularly receive more than $20 per month in tips, allowing for a tip credit against the state minimum wage.
What those rules do as a Kansas shift is created.
Teambridge automatically applies the correct tipped employee classification based on Kansas's specific $20 monthly threshold, ensuring compliance with state wage laws from the moment a shift is scheduled.
Identify Kansas-specific tipped status
Teambridge's system evaluates employee tip earnings against the Kansas $20/month threshold, not the federal $30/month, to accurately classify tipped employees.
Apply correct cash wage calculation
For employees meeting the KS $20/month tip threshold, the system ensures the cash wage paid is at least $2.13/hour, correctly applying the maximum tip credit.
Prevent underpayment violations
Automated checks ensure that if an employee's tips plus cash wage do not meet the $7.25 state minimum, the employer automatically makes up the difference, preventing violations.
Deploy Kansas wage & hour compliance, on autopilot.
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Kansas sets a $20 monthly tip threshold for tipped employee classification.
Kansas state law explicitly defines a lower threshold for classifying employees as "tipped" compared to federal regulations, impacting wage calculations and tip credit applicability.
K.S.A. § 44-1203(a): "Every employer shall pay to each employee wages at a rate of not less than $7.25 an hour. The provisions of this subsection shall not apply with respect to any employee to whom the provisions of the federal Fair Labor Standards Act of 1938, as amended, are applicable. An employer may credit against the minimum wage required by this subsection tips received by any employee engaged in an occupation in which tips customarily and regularly constitute more than $20 a month, if the employer informs such employee of the provisions of this subsection..."
Threshold for Tipped Employee Status
Under Kansas law (K.S.A. § 44-1203), an employee is considered a "tipped employee" if they customarily and regularly receive more than $20 per month in tips. This threshold is more inclusive than the federal Fair Labor Standards Act (FLSA), which sets the threshold at more than $30 per month. The lower state threshold means that a greater number of service industry workers in Kansas may be classified as tipped employees, thereby allowing their employers to utilize a tip credit against the state minimum wage.
Application of Tip Credit and Cash Wage
For employees who meet the Kansas $20/month tip threshold, employers may pay a direct cash wage of $2.13 per hour, provided that the employee's tips, when combined with this cash wage, at least equal the state minimum wage of $7.25 per hour. If the combination of the cash wage and tips does not reach the $7.25 minimum wage, the employer is legally obligated to make up the difference. Employers must inform employees of the tip credit provisions and ensure that all tips received by the employee are retained by the employee, except for valid tip pooling arrangements.
Teambridge ensures Kansas's tipped wage rules are always applied correctly.
From initial employee setup to daily shift scheduling and payroll processing, Teambridge automates the complex nuances of Kansas's tipped wage laws, eliminating manual errors and compliance risks.
Accurate Tipped Employee Classification
When a new employee is onboarded in Kansas, Teambridge prompts for expected tip income. If it exceeds $20/month, the system automatically flags them as a tipped employee under state law, bypassing the higher federal threshold.
Real-time Tip Credit Monitoring
Teambridge continuously monitors employee tip earnings against the $20 monthly threshold. For classified tipped employees, it ensures that the combined cash wage ($2.13/hour) and reported tips meet the $7.25 state minimum wage for every hour worked.
Automated Tip Credit Adjustments
At payroll, Teambridge automatically calculates and applies the maximum permissible tip credit. If an employee's tips fall short of bridging the gap to the state minimum wage, the system automatically adjusts the employer's contribution to ensure full compliance, preventing underpayment.
Comprehensive Compliance Records
All tip income, cash wage payments, and tip credit calculations are meticulously recorded and auditable, providing a clear trail of compliance with K.S.A. § 44-1203 for any state labor department inquiry.