Example 2-3

Alfred Sims is a tipped employee who normally works a 40-hour week and averages over $300 in tips each week. If his employer takes the maximum tip credit against the minimum wage ($5.12 per hour), in a week in which Alfred worked 44 hours, the restaurant would pay him:

40 hours $2.13	=	$85.20
4 hours $5.76	=	23.04
Gross pay	$108.24

Gabrielle Hunter, a waitress at the Hole-in-the-Wall restaurant, worked 45 hours this week and collected over $482 in tips. The restaurant uses the full tip credit against the minimum wage and pays Hunter the minimum required for tipped employees.

Determine her gross pay from the restaurant. Round all intermediate calculations and final answer to the nearest cent.

a. Pay for the 40 hours	$
b. Pay for the overtime hours	$

Note:In this chapter and in all succeeding work throughout the course,unless instructed otherwise, calculate hourly rates and over-time rates as follows:

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.