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Tipped Minimum Wage by State

All 50 states and DC on one page · Last reviewed September 2026

Tipped minimum wage: illustration for the Kloqk tipped minimum wage guide

Federal law lets employers pay tipped staff a cash wage as low as $2.13 an hour, provided tips bring them to at least the full minimum wage; if tips fall short in any workweek, the employer owes the difference. Several states have abolished this tip credit entirely and require the full state minimum before tips. The rest permit a credit but often set a higher cash-wage floor than the federal $2.13.

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Tipped minimum wage by state

Every state and DC, in one place. Open a state for its rules, the quick facts an employer needs, and a worked example where the maths is not obvious.

Alabama

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Alabama

Alabama allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Alabama, Worked Through

Alabama allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Alabama

What is the tipped minimum wage in Alabama?
Alabama allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Alabama?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Alaska

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Alaska

Alaska does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Alaska, Worked Through

Alaska does not allow a tip credit, so tipped staff are paid the full $14.00 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Alaska

What is the tipped minimum wage in Alaska?
Alaska doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Alaska?
No, Alaska requires the full minimum cash wage for tipped employees.

↑ Back to the state list

Arizona

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Arizona

Arizona allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Arizona, Worked Through

Arizona allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.15 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Arizona

What is the tipped minimum wage in Arizona?
Arizona allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Arizona?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Arkansas

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Arkansas

Arkansas allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Arkansas, Worked Through

Arkansas allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $11.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Arkansas

What is the tipped minimum wage in Arkansas?
Arkansas allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Arkansas?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

California

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in California

California does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in California, Worked Through

California does not allow a tip credit, so tipped staff are paid the full $16.90 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in California

What is the tipped minimum wage in California?
California doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in California?
No, California requires the full minimum cash wage for tipped employees.

↑ Back to the state list

Colorado

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Colorado

Colorado allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Colorado, Worked Through

Colorado allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.16 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Colorado

What is the tipped minimum wage in Colorado?
Colorado allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Colorado?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Connecticut

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Connecticut

Connecticut allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Connecticut, Worked Through

Connecticut allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $16.94 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Connecticut

What is the tipped minimum wage in Connecticut?
Connecticut allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Connecticut?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Delaware

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Delaware

Delaware allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Delaware, Worked Through

Delaware allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Delaware

What is the tipped minimum wage in Delaware?
Delaware allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Delaware?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

District of Columbia

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in District of Columbia

District of Columbia allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in District of Columbia, Worked Through

District of Columbia allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $18.40 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in District of Columbia

What is the tipped minimum wage in District of Columbia?
District of Columbia allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in District of Columbia?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Florida

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Florida

Florida allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Florida, Worked Through

Florida allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $14.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Florida

What is the tipped minimum wage in Florida?
Florida allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Florida?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Georgia

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Georgia

Georgia allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Georgia, Worked Through

Georgia allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Georgia

What is the tipped minimum wage in Georgia?
Georgia allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Georgia?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Hawaii

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Hawaii

Hawaii allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Hawaii, Worked Through

Hawaii allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $16.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Hawaii

What is the tipped minimum wage in Hawaii?
Hawaii allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Hawaii?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Idaho

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Idaho

Idaho allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Idaho, Worked Through

Idaho allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Idaho

What is the tipped minimum wage in Idaho?
Idaho allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Idaho?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Illinois

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Illinois

Illinois allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Illinois, Worked Through

Illinois allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Illinois

What is the tipped minimum wage in Illinois?
Illinois allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Illinois?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Indiana

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Indiana

Indiana allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Indiana, Worked Through

Indiana allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Indiana

What is the tipped minimum wage in Indiana?
Indiana allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Indiana?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Iowa

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Iowa

Iowa allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Iowa, Worked Through

Iowa allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Iowa

What is the tipped minimum wage in Iowa?
Iowa allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Iowa?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Kansas

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Kansas

Kansas allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Kansas, Worked Through

Kansas allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Kansas

What is the tipped minimum wage in Kansas?
Kansas allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Kansas?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Kentucky

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Kentucky

Kentucky allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Kentucky, Worked Through

Kentucky allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Kentucky

What is the tipped minimum wage in Kentucky?
Kentucky allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Kentucky?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Louisiana

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Louisiana

Louisiana allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Louisiana, Worked Through

Louisiana allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Louisiana

What is the tipped minimum wage in Louisiana?
Louisiana allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Louisiana?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Maine

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Maine

Maine allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Maine, Worked Through

Maine allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.10 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Maine

What is the tipped minimum wage in Maine?
Maine allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Maine?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Maryland

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Maryland

Maryland allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Maryland, Worked Through

Maryland allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Maryland

What is the tipped minimum wage in Maryland?
Maryland allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Maryland?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Massachusetts

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Massachusetts

Massachusetts allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Massachusetts, Worked Through

Massachusetts allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Massachusetts

What is the tipped minimum wage in Massachusetts?
Massachusetts allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Massachusetts?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Michigan

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Michigan

Michigan allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Michigan, Worked Through

Michigan allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $13.73 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Michigan

What is the tipped minimum wage in Michigan?
Michigan allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Michigan?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Minnesota

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Minnesota

Minnesota does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Minnesota, Worked Through

Minnesota does not allow a tip credit, so tipped staff are paid the full $11.41 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Minnesota

What is the tipped minimum wage in Minnesota?
Minnesota doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Minnesota?
No, Minnesota requires the full minimum cash wage for tipped employees.

↑ Back to the state list

Mississippi

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Mississippi

Mississippi allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Mississippi, Worked Through

Mississippi allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Mississippi

What is the tipped minimum wage in Mississippi?
Mississippi allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Mississippi?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Missouri

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Missouri

Missouri allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Missouri, Worked Through

Missouri allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Missouri

What is the tipped minimum wage in Missouri?
Missouri allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Missouri?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Montana

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Montana

Montana does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Montana, Worked Through

Montana does not allow a tip credit, so tipped staff are paid the full $10.85 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Montana

What is the tipped minimum wage in Montana?
Montana doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Montana?
No, Montana requires the full minimum cash wage for tipped employees.

↑ Back to the state list

Nebraska

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Nebraska

Nebraska allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Nebraska, Worked Through

Nebraska allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Nebraska

What is the tipped minimum wage in Nebraska?
Nebraska allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Nebraska?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Nevada

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Nevada

Nevada does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Nevada, Worked Through

Nevada does not allow a tip credit, so tipped staff are paid the full $12.00 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Nevada

What is the tipped minimum wage in Nevada?
Nevada doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Nevada?
No, Nevada requires the full minimum cash wage for tipped employees.

↑ Back to the state list

New Hampshire

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in New Hampshire

New Hampshire allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in New Hampshire, Worked Through

New Hampshire allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in New Hampshire

What is the tipped minimum wage in New Hampshire?
New Hampshire allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in New Hampshire?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

New Jersey

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in New Jersey

New Jersey allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in New Jersey, Worked Through

New Jersey allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $15.92 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in New Jersey

What is the tipped minimum wage in New Jersey?
New Jersey allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in New Jersey?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

New Mexico

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in New Mexico

New Mexico allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in New Mexico, Worked Through

New Mexico allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $12.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in New Mexico

What is the tipped minimum wage in New Mexico?
New Mexico allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in New Mexico?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

New York

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in New York

New York allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in New York, Worked Through

New York allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $16.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in New York

What is the tipped minimum wage in New York?
New York allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in New York?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

North Carolina

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in North Carolina

North Carolina allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in North Carolina, Worked Through

North Carolina allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in North Carolina

What is the tipped minimum wage in North Carolina?
North Carolina allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in North Carolina?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

North Dakota

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in North Dakota

North Dakota allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in North Dakota, Worked Through

North Dakota allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in North Dakota

What is the tipped minimum wage in North Dakota?
North Dakota allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in North Dakota?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Ohio

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Ohio

Ohio allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Ohio, Worked Through

Ohio allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $11.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Ohio

What is the tipped minimum wage in Ohio?
Ohio allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Ohio?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Oklahoma

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Oklahoma

Oklahoma allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Oklahoma, Worked Through

Oklahoma allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Oklahoma

What is the tipped minimum wage in Oklahoma?
Oklahoma allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Oklahoma?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Oregon

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Oregon

Oregon does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Oregon, Worked Through

Oregon does not allow a tip credit, so tipped staff are paid the full $15.55 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Oregon

What is the tipped minimum wage in Oregon?
Oregon doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Oregon?
No, Oregon requires the full minimum cash wage for tipped employees.

↑ Back to the state list

Pennsylvania

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Pennsylvania

Pennsylvania allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Pennsylvania, Worked Through

Pennsylvania allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Pennsylvania

What is the tipped minimum wage in Pennsylvania?
Pennsylvania allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Pennsylvania?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Rhode Island

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Rhode Island

Rhode Island allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Rhode Island, Worked Through

Rhode Island allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $16.00 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Rhode Island

What is the tipped minimum wage in Rhode Island?
Rhode Island allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Rhode Island?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

South Carolina

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in South Carolina

South Carolina allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in South Carolina, Worked Through

South Carolina allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in South Carolina

What is the tipped minimum wage in South Carolina?
South Carolina allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in South Carolina?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

South Dakota

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in South Dakota

South Dakota allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in South Dakota, Worked Through

South Dakota allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $11.85 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in South Dakota

What is the tipped minimum wage in South Dakota?
South Dakota allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in South Dakota?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Tennessee

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Tennessee

Tennessee allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Tennessee, Worked Through

Tennessee allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Tennessee

What is the tipped minimum wage in Tennessee?
Tennessee allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Tennessee?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Texas

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Texas

Texas allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Texas, Worked Through

Texas allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Texas

What is the tipped minimum wage in Texas?
Texas allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Texas?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Utah

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Utah

Utah allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Utah, Worked Through

Utah allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Utah

What is the tipped minimum wage in Utah?
Utah allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Utah?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Vermont

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Vermont

Vermont allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Vermont, Worked Through

Vermont allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $14.42 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Vermont

What is the tipped minimum wage in Vermont?
Vermont allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Vermont?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Virginia

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Virginia

Virginia allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Virginia, Worked Through

Virginia allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $12.77 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Virginia

What is the tipped minimum wage in Virginia?
Virginia allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Virginia?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Washington

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Not allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Washington

Washington does not allow a tip credit. Tipped employees must be paid the full state minimum wage in cash, with tips on top.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Washington, Worked Through

Washington does not allow a tip credit, so tipped staff are paid the full $17.13 minimum in cash before any tips. Tips are on top, and they belong to the employee.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Washington

What is the tipped minimum wage in Washington?
Washington doesn't allow a tip credit, so tipped workers must receive the full state minimum wage in cash, with tips on top.
Can my employer pay me $2.13 an hour in Washington?
No, Washington requires the full minimum cash wage for tipped employees.

↑ Back to the state list

West Virginia

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in West Virginia

West Virginia allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in West Virginia, Worked Through

West Virginia allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $8.75 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in West Virginia

What is the tipped minimum wage in West Virginia?
West Virginia allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in West Virginia?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Wisconsin

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Wisconsin

Wisconsin allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Wisconsin, Worked Through

Wisconsin allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Wisconsin

What is the tipped minimum wage in Wisconsin?
Wisconsin allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Wisconsin?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

↑ Back to the state list

Wyoming

Show

Federal tipped wage

$2.13/hr cash

Tip credit

Allowed

Must reach

Full min with tips

How the Tip Credit Works

Under federal law, employers can pay tipped employees a cash wage as low as $2.13 per hour and claim a 'tip credit' for the difference, but only if tips bring the worker up to at least the full minimum wage. If tips fall short, the employer must make up the gap.

Tipped Wages in Wyoming

Wyoming allows a tip credit, but the required tipped cash wage and the exact rules vary and change. Confirm the current tipped minimum with the state before you run payroll.

Staying Compliant

Track tipped hours and tips so you can show that cash wages plus tips met the full minimum for every shift, the most common tipped-wage claim is exactly that they didn't.

Tipped Pay in Wyoming, Worked Through

Wyoming allows a tip credit, which lets an employer count a portion of tips toward the minimum wage. The cash wage plus tips must reach at least $7.25 for every hour worked, and if tips fall short in a given week the employer makes up the difference. That top-up is calculated per workweek, not averaged across a month.

Overtime for tipped staff is calculated on the full minimum wage, not on the reduced cash wage. Working the premium from the cash wage is a common and expensive error, because it understates every overtime hour.

A valid tip pool can include employees who customarily receive tips. Managers and supervisors cannot take from it, and neither can the business, regardless of how the arrangement is described to staff.

Common questions in Wyoming

What is the tipped minimum wage in Wyoming?
Wyoming allows a tip credit with a lower cash wage (federally as low as $2.13/hr), as long as tips bring the worker to the full minimum. Confirm the current state tipped wage.
Can my employer pay me $2.13 an hour in Wyoming?
Possibly, as the federal tipped cash floor, but only if your tips bring total pay to at least the full applicable minimum wage each shift.

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This is general information, not legal advice. Wage-and-hour rules change, confirm the current rules for your state with the official sources below before acting.

How this page is made: compiled by the Kloqk team from federal and state labor department sources, with software assistance to lay out the state-by-state sections, and reviewed September 2026. Corrections: [email protected].

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