UNCLASSIFIED

MESSAGE NUMBER #271438Z
DATE: JAN 97

UNCLAS

SUBJECT: TIP-OFFSET FOR NONAPPROPRIATED FUND (NAF) WAITER POSITIONS

1. ENACTMENT OF THE SMALL BUSINESS JOB PROTECTION ACT OF 1996, PUBLIC LAW 104-188, WHICH AMENDED THE FAIR LABOR STANDARDS ACT (FLSA) AND INCREASED THE FEDERAL MINIMUM WAGE TO $4.75 PER HOUR ON OCTOBER 1, 1996, ALSO INCLUDED PROVISIONS THAT IMPACT THE SPECIAL PAY PLAN GOVERNING TIP-OFFSETS FOR NAF FEDERAL WAGE SYSTEM (FWS) EMPLOYEES, TIP-OFFSET IS THE AMOUNT OF MONEY AN EMPLOYER, IN MEETING THE LEGAL MINIMUM WAGE, MAY REDUCE A TIPPED EMPLOYEE'S WAGES IN CONSIDERATION OF TIPS RECEIVED. CHANGES TO REFLECT THE FLSA AMENDMENTS ON TIP-OFFSET WILL BE FORTHCOMING AND REFLECTED IN SUBCHAPTER S11-3 OF THE OFFICE OF PERSONNEL MANAGEMENT OPERATING MANUAL FOR FWS NAF EMPLOYEES. PENDING CHANGES TO SUBCHAPTER S11-3, NO INCREASE TO THE MAXIMUM AMOUNT ($2.12 PER HOUR) OF TIP-OFFSET IS AUTHORIZED.

2. UNLESS PROHIBITED BY STATE LAW, ONLY NAF FWS EMPLOYEES IN NON-FOREIGN AREAS WHO CUSTOMARILY AND REGULARLY RECEIVE MORE THAN $30.00 A MONTH IN TIPS AND OCCUPY POSITIONS CLASSIFIED AS WAITER IN THE 7420 OCCUPATIONAL SERIES ARE ELIGIBLE FOR TIP-OFFSET. NAF EMPLOYEES RECEIVING A TIP-OFFSET AND OCCUPYING POSITIONS NOT IN THE 7420 OCCUPATIONAL SERIES ARE NOT COVERED BY THIS LAW AND MUST BE REMOVED FROM THE TIP-OFFSET AND PAID IN ACCORDANCE WITH THE FWS WAGE SCHEDULE IN EFFECT FOR THEIR EMPLOYMENT LOCATION. SERVICING CIVILIAN PERSONNEL OFFICES MUST REVIEW THEIR RECORDS AND ENSURE EMPLIANCE WITH THIS MESSAGE.

3. THE DETERMINATION AS TO WHEN AND WHETHER A TIP-OFFSET IS APPLIED AND THE MOST APPLIED ($2.12 PER HOUR MAXIMUM) IS MADE THROUGH NEGOTIATIONS WITH THE RECOGNIZED LABOR ORGANIZATION REPRESENTING THE TIPPED EMPLOYEES. WHEN TIPPED EMPLOYEES ARE NOT REPRESENTED BY A UNION, THE TIP-OFFSET DETERMINATION IS MADE BY THE INSTALLATION COMMANDER. STATE LAWS MUST BE APPLIED WHENEVER THE STATE LAWS ARE MORE BENEFICIAL TO EMPLOYEES THAN THE FLSA.

4. POINT OF CONTACT IS PETER GARY, COMM 703-325-7763 OR DSN 221-7763 OR EMAIL PETER.GARY@(email address expired)

SANDRA G. CURRAN, DSN: 221-7762
CHIEF, NAF PERSONNEL POLICY AND PROG. DIV.