Tipped Minimum Wage in California

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.

California Labor-Law Snapshot

California does not allow a tip credit, so tipped staff earn the full $16.90 before tips. The California minimum wage is $16.90/hour (about $9.65 above the federal $7.25), with a higher local minimum in Los Angeles and San Francisco, so a tipped worker's effective floor tracks that figure.

For California employers these rules interact with timekeeping: accurate, audit-logged hours drive overtime, sick-leave accrual, final pay, and break records. California requires meal breaks on longer shifts and requires paid rest breaks; a final paycheck is due within 72 hours — or immediately if the employee gave at least 72 hours' notice when an employee resigns. Confirm current California figures with the state labor office before relying on any single number.

Official Sources

• U.S. DOL — Minimum wage by state
• U.S. DOL — State overtime
• U.S. DOL — State labor offices

More California Guides

Tipped Minimum Wage in Other States

California Tipped Minimum Wage: Frequently Asked Questions