Fundamental Payroll Certification (FPC) Practice Exam

Tip credits are a mechanism that allows employers to pay tipped employees a lower minimum wage, with the understanding that these employees will earn additional income from tips. However, tip credits apply specifically to employees who receive tips as a part of their job responsibilities, such as servers, valets, and bartenders. These positions are heavily reliant on tips for their overall compensation, making them subject to tip credit regulations.

Managers, on the other hand, typically do not earn tips in the same way that other restaurant employees do. Since their primary role is managerial and they do not rely on gratuities from customers to supplement their income, they are not considered tipped employees. Therefore, they are not impacted by tip credits, allowing them to receive the full minimum wage without any reduction.

This distinction clarifies why managers stand out in this context regarding the application of tip credits, making this choice the one that is not affected.