Gerund and present participle phrases are easy to confuse because they both begin with an ing word. The difference is that a gerund phrase will always function as a noun while a present participle phrase describes another word in the sentence.erund and present participle phrases are easy to confuse because they both begin with an ing word. The difference is that a gerund phrase will always function as a noun while a present participle phrase describes another word in the sentence.
: Section 3(m) of the FLSA permits an employer to take a tip credit toward its minimum wage obligation for tipped employees equal to the difference between the required cash wage (which must be at least $2.13) and the federal minimum wage.
Over time, the federal tip credit provisionâthe difference, made up for by customersâ tips, between the regular minimum wage and the tipped minimum wageâdropped to as low as 40 percent (1980â1989) while never exceeding half of the regular minimum wage prior to 1996.