Overtime rules for restaurant workers
Restaurant servers, cooks, and tipped employees are entitled to overtime under federal law. Tipped employees have unique OT calculations based on the full minimum wage, not the tipped minimum.
- Industry: Hospitality
- Average hourly rate (US): $15.00
- Average weekly hours: 35
Special rules for restaurant workers
- Tipped employees: OT calculated on the FULL minimum wage rate, not the tipped wage
- Tip credits cannot be applied to overtime hours in the same way
- Combined cash wage + tips must equal at least 1.5× minimum wage during OT
- New York hospitality industry has additional spread-of-hours rules
Are restaurant workers entitled to overtime?
The answer depends on your specific job duties, salary level, and state. Under federal FLSA, most restaurant workers are non-exempt and entitled to time-and-a-half pay for hours worked beyond 40 per week. Some categories — like senior-level or specifically exempt roles — may not qualify.
To determine your status, ask: Are you paid hourly, or do you earn at least $43,888/year on a salary basis? Do your job duties match the FLSA's exemption tests (executive, administrative, or professional)? If you're unsure, the calculator above will help estimate your OT pay assuming you're non-exempt.
How to calculate restaurant workers' overtime pay
For most restaurant workers working under federal FLSA rules:
- Identify your regular hourly rate. If salaried, divide your weekly salary by 40.
- Track all hours worked in the workweek. Include training, mandatory meetings, and any pre/post-shift duties.
- Subtract 40 to find OT hours. All hours over 40 are overtime.
- Multiply OT hours by your rate × 1.5. This is your overtime pay.
- Add regular pay (40 × rate) to OT pay for your gross weekly total.