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.
How to Calculate Overtime for Tipped Employees. When calculating overtime for tipped employees it is important to note that the hourly rate being multiplied by 1.5 is the minimum wage of $7.40 and not the reduced wage of $2.65.The tip credit then reduces the overtime pay rate. Example: Jimmyâs Restaurant has a waiter who works 50 hours in a week. common mistake is to simply take the $2.65 minimum tipped wages and multiply it by 1.5. Calculating Overtime When Employees Have Different Pay Rates. When employees have different pay rates during a pay period (e.g., a waitress also works as a hostess), a weighted average pay rate must be calculated.