Authority: IC 22-4-18-1; IC 22-4.1-3-3

Affected: IC 22-4-4-2; IC 22-4.1

Sec. 11. (a) Tips and gratuities received by an employee from persons other than the employer, and not accounted for to the employer, are not wages. However, the amount of tips or gratuities accounted for by the employee to the employer by written statement, as required by Section 6053 of the Internal Revenue Code when the tips are in excess of twenty dollars ($20) per month, are wages within the meaning of IC 22-4-4- 2.

(b) Where an employer does not permit tipping of employees, but rather:

1. (1) adds a certain percent to the charges made to patrons; and
2. (2) disburses the added amounts to employees;

the sums disbursed are wages and not tips.

(Department of Workforce Development; 646 IAC 5-6-11; filed Apr 26, 2011, 11:23 a.m.: 20110525-IR-646100464FRA; readopted filed Nov 27, 2017, 3:22 p.m.: 20171227-IR- 646170447RFA; readopted filed Jun 16, 2023, 1:21 p.m.: 20230712-IR-646230344RFA)