Tipped Minimum Wage by State
All 50 states and DC on one page · Last reviewed September 2026
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.
States with no tip credit (7)
Tipped staff must be paid the full state minimum before tips.
States allowing a tip credit (44)
A lower cash wage is permitted as long as tips bring the worker to the full minimum.
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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
ShowHide
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.
Alaska
ShowHide
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.
Arizona
ShowHide
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.
Arkansas
ShowHide
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.
California
ShowHide
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.
Colorado
ShowHide
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.
Connecticut
ShowHide
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.
Delaware
ShowHide
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.
District of Columbia
ShowHide
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.
Florida
ShowHide
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.
Georgia
ShowHide
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.
Hawaii
ShowHide
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.
Idaho
ShowHide
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.
Illinois
ShowHide
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.
Indiana
ShowHide
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.
Iowa
ShowHide
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.
Kansas
ShowHide
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.
Kentucky
ShowHide
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.
Louisiana
ShowHide
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.
Maine
ShowHide
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.
Maryland
ShowHide
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.
Massachusetts
ShowHide
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.
Michigan
ShowHide
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.
Minnesota
ShowHide
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.
Mississippi
ShowHide
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.
Missouri
ShowHide
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.
Montana
ShowHide
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.
Nebraska
ShowHide
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.
Nevada
ShowHide
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.
New Hampshire
ShowHide
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.
New Jersey
ShowHide
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.
New Mexico
ShowHide
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.
New York
ShowHide
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.
North Carolina
ShowHide
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.
North Dakota
ShowHide
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.
Ohio
ShowHide
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.
Oklahoma
ShowHide
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.
Oregon
ShowHide
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.
Pennsylvania
ShowHide
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.
Rhode Island
ShowHide
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.
South Carolina
ShowHide
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.
South Dakota
ShowHide
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.
Tennessee
ShowHide
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.
Texas
ShowHide
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.
Utah
ShowHide
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.
Vermont
ShowHide
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.
Virginia
ShowHide
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.
Washington
ShowHide
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.
West Virginia
ShowHide
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.
Wisconsin
ShowHide
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.
Wyoming
ShowHide
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.
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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