Tip credit definition
Tip credit means the amount or percentage by which an employer is allowed to reduce the minimum wage for a tipped employee.
Tip credit provisions would not apply unless Entertainer was informed of them; this document serving as such notice. Entertainer would further be entitled to retain all tips - but not Entertainment Fees - that she might collect (the Club would not retain any portion of her tip income), although she would be required to pay 15% of her tips into a “tip pool” that would be distributed to non-dancer regularly tipped employees. The parties additionally acknowledge that were the relationship between them to be that of employer/employee, Entertainer’s employment would be “at will” (she could be fired at any time without cause and without prior warning), and the Club could control, among other things, Entertainer’s: Work schedule and hours of work; job responsibilities; physical appearance (such as make-up, hairstyle, etc.); costumes/wearing apparel; music; work habits; the selection of her customers; the nature, content, character, manner and means of her performances; and her ability to perform at other locations. ENTERTAINER REPRESENTS THAT SHE DESIRES TO BE ABLE TO MAKE ALL OF THESE CHOICES HERSELF, WITHOUT THE CONTROL OF THE CLUB, AND THE PARTIES AGREE THAT ALL SUCH DECISIONS ARE EXCLUSIVELY RESERVED TO HER CONTROL. ENTERTAINER FURTHER REPRESENTS THAT SHE DOES NOT DESIRE TO PERFORM AS AN EMPLOYEE OF THE CLUB UNDER THE TERMS OUTLINED ABOVE, BUT, RATHER, DESIRES TO PERFORM AS A TENANT CONSISTENT WITH THE OTHER PROVISIONS OF THIS AGREEMENT.