Restaurant Server and Host Course (US): Tips, payments, side work and closing

1. Question 1 of 17

   Under the FLSA, who is a "tipped employee"?

   • AAny worker paid by the hour
   • BOnly bartenders
   • CAny worker who has ever received a tip from a customer, even just once
   • DA worker who regularly gets more than $30 a month in tips
   Show answer

   Answer: D. A worker who regularly gets more than $30 a month in tips

   DOL Fact Sheet #15 defines a tipped employee as one who customarily and regularly receives more than $30 a month in tips.

2. Question 2 of 17

   What is a tip credit?

   • AA discount guests get for tipping
   • BA bonus paid to servers with good reviews
   • CCounting part of a tipped worker's tips toward the minimum wage the employer must pay
   • DA loan against future tips
   Show answer

   Answer: C. Counting part of a tipped worker's tips toward the minimum wage the employer must pay

   Under the federal FLSA, employers may pay a lower cash wage and count some of the worker's tips toward minimum wage, if they meet strict rules.

3. Question 3 of 17

   If a server's cash wage plus tips does not reach the full minimum wage for a workweek, what must happen under the FLSA?

   • AThe server earns less that week
   • BThe server must work extra hours to reach the minimum
   • CThe employer must make up the difference
   • DThe tips roll over to next week
   Show answer

   Answer: C. The employer must make up the difference

   Employers taking a tip credit must make sure tips plus cash wages equal at least the minimum wage each workweek, and pay any shortfall.

4. Question 4 of 17

   Which of these states does NOT allow employers to take a tip credit?

   • AAlabama
   • BGeorgia
   • CTexas
   • DCalifornia
   Show answer

   Answer: D. California

   The DOL lists Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington as states requiring the full state minimum wage before tips.

5. Question 5 of 17

   Which list shows only states where employers must pay tipped workers the full state minimum wage before tips?

   • AWashington, Oregon, Nevada, Minnesota
   • BCalifornia, Georgia, Nevada, and Alabama
   • CTexas, Washington, Florida, Oregon
   • DAlaska, Tennessee, Montana, Texas
   Show answer

   Answer: A. Washington, Oregon, Nevada, Minnesota

   According to the DOL, Alaska, California, Minnesota, Montana, Nevada, Oregon and Washington do not allow a tip credit.

6. Question 6 of 17

   Under the FLSA, may an employer keep part of a server's tips?

   • AYes, if the server earns over minimum wage
   • BNo, employers may not keep any part of employees' tips
   • CYes, to pay for broken dishes and glasses during the shift
   • DYes, up to half
   Show answer

   Answer: B. No, employers may not keep any part of employees' tips

   DOL Fact Sheet #15 says the FLSA prohibits employers from keeping any portion of employees' tips, whether or not they take a tip credit.

7. Question 7 of 17

   Can a restaurant manager who supervises the servers take money from the servers' tip pool?

   • ANo, managers and supervisors may not get tips from a tip pool
   • BYes, if the owner agrees
   • CYes, if they worked the same shift and helped run food to tables
   • DYes, always
   Show answer

   Answer: A. No, managers and supervisors may not get tips from a tip pool

   Managers and supervisors may keep only tips they receive directly for service they directly and solely provide. They may not take part in a pool to receive other employees' tips.

8. Question 8 of 17

   When an employer takes a tip credit, who may share in a mandatory tip pool?

   • AThe owner and the general manager
   • BAnyone the server chooses
   • COnly employees who customarily and regularly receive tips, such as servers, bussers and service bartenders
   • DCooks and dishwashers
   Show answer

   Answer: C. Only employees who customarily and regularly receive tips, such as servers, bussers and service bartenders

   A traditional tip pool, used when a tip credit is taken, is limited to customarily tipped employees.

9. Question 9 of 17

   Under the FLSA, when may cooks and dishwashers be included in a mandatory tip pool?

   • AOnly on weekends
   • BWhen the employer takes no tip credit and pays everyone at least the full minimum wage directly
   • COnly if the guests agree
   • DNever
   Show answer

   Answer: B. When the employer takes no tip credit and pays everyone at least the full minimum wage directly

   A nontraditional pool that includes back-of-house staff is allowed only when the employer pays the full minimum wage in cash and takes no tip credit. Managers still cannot share.

10. Question 10 of 17

    A restaurant adds a mandatory 18% charge to every party of eight. Under federal rules, what is this?

    • AA tax
    • BA service charge, not a tip
    • CA tip credit
    • DA tip that belongs to the server
    Show answer

    Answer: B. A service charge, not a tip

    DOL and the IRS both say a compulsory charge added to the bill is not a tip. A tip is voluntary and its amount is decided by the customer.

11. Question 11 of 17

    Under California's honest pricing rules, what must a restaurant do if it adds a mandatory fee?

    • AShow the fee clearly and conspicuously wherever prices are shown
    • BHide it until the check arrives
    • CCharge it only to tourists
    • DCall it a tip
    Show answer

    Answer: A. Show the fee clearly and conspicuously wherever prices are shown

    California allows restaurants to charge mandatory fees only if they are clearly and conspicuously displayed wherever prices are shown.

12. Question 12 of 17

    A guest tips on a credit card. Under the FLSA, what may the employer deduct from that tip?

    • AA flat $5
    • BNothing ever, in every state
    • CHalf the tip
    • DNo more than the card company's actual processing fee percentage on the tip
    Show answer

    Answer: D. No more than the card company's actual processing fee percentage on the tip

    Under the FLSA, an employer may reduce card tips only by the actual percentage fee the card company charges on the tip, never by more.

13. Question 13 of 17

    Under IRS rules, when must you report cash tips to your employer?

    • AOnly if they total more than $500 a month
    • BNever; the employer guesses
    • COnce a year, in April
    • DBy the 10th of the next month, if they total $20 or more that month from that employer
    Show answer

    Answer: D. By the 10th of the next month, if they total $20 or more that month from that employer

    The IRS requires employees to report tips of $20 or more in a month to their employer by the 10th day of the following month.

14. Question 14 of 17

    For IRS tip reporting, which tips must you include when you report to your employer?

    • AOnly coins left on the table
    • BOnly tips over $20
    • CTips paid by credit or debit card and tips received from a tip pool
    • DOnly paper money
    Show answer

    Answer: C. Tips paid by credit or debit card and tips received from a tip pool

    The IRS counts tips paid by card, check or other electronic payment as cash tips, and tips you receive from other workers through a tip pool must be reported too.

15. Question 15 of 17

    A table of four asks for separate checks after ordering. How can you make this easier next time?

    • ARefuse to split checks
    • BAsk early if it is one check or separate, and enter items by seat
    • CMake them pay cash only
    • DSplit the total into four equal parts without asking the table first
    Show answer

    Answer: B. Ask early if it is one check or separate, and enter items by seat

    Asking at the start and ordering by seat lets the POS split checks quickly and correctly.

16. Question 16 of 17

    According to OSHA's restaurant guidance, which is a safe cash habit?

    • ALeave the register drawer open for speed
    • BDo not count cash in front of customers
    • CKeep the back door open during closing
    • DCount tips at the table so guests see them
    Show answer

    Answer: B. Do not count cash in front of customers

    OSHA advises not counting cash in front of customers, keeping the register closed when not in use, and keeping back doors locked unless receiving a delivery.

17. Question 17 of 17

    At closing, what does OSHA's guidance suggest about leaving the restaurant?

    • ALeave the doors unlocked for the morning crew
    • BLeave through the back door one at a time
    • CThe newest worker locks up alone
    • DFollow lock-up procedures so staff leave together, and do not leave young workers alone to lock up
    Show answer

    Answer: D. Follow lock-up procedures so staff leave together, and do not leave young workers alone to lock up

    OSHA recommends lock-up procedures that let everyone leave together and says young workers should not be left alone at night to lock up.

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