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.
TIP POOLING & TIP SHARING WITH TIP CREDIT. A tip credit allows employers to pay their employees less than the federal. minimum wage and apply their tips as wage credit to fulfill the federal minimum wage. The FLSA, however, leaves to each state the authority to determine whether tip credit is. permitted in that state for purposes of both state and federal law.