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Minimum Wage Tip Receivers

A tip is wage according to the Fair Labor Standard Act (FLSA). You are a tipped employee - that's for example a waitress or bellboy - if you receive regularly and costomarily more than $30 a month in tip. If so, your employer is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage of $6,55 per hour. Your employer can only do that if you are informed about the tip credit allowance, if your employer is able to show that you earn at least the minimum wage when direct wage and tip are combined and allows you to retain all tips. In a lot of states your employer is allowed to install a valid tip pooling arrangement in which all employees participate. When your job is a combined tipped and a non-tipped profession, the tip credit is always only for the hours spent in the tipped occupation. 

When you are subject to both the federal and state wage laws - see below - you are entitled to the provisions of each law which provide the greater benefits.

Some states set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Such differential provisions are not displayed below.

 

2010 Minimum Wage Tip Receivers per Jurisdiction
Jurisdiction
Basic combined Cash & Tip Minimum Wage 
per hour
Maximum Tip Credit 
against Minimum Wage 
per hour
Minimum Cash Wage
per hour
Definition of Tipped Employee by monthly Tips - Notes
Federal
$7.25 $5.12 $2.13 More than $30
Alabama



No state minimum wage laws
Alaska

State law doesn't allow tip credit
$7.25
Arizona
$7.25 $4.25 $3.00 Not specified
Arkansas
$6.25 $3.63
$2.62
Not specified
California

State law doesn't allow tip credit $8.00
Colorado
$7.28 $3.02 $4.26 More than $30
Connecticut:

$2.48
 $5.52
At least $10 weekly for full-time employees or $2.00 daily for part-time in hotels and restaurants. Not specified for other industries.
Beauty shop

none
$8.00
Hotel, restaurant

$2.48 $5.52
Bartenders

$0.88
$7.12
Delaware
$7.25 $5.02 $2.23 More than $30
District of Columbia
$8.25 $5.48 $2.77 Not specified
Florida
$7.25 $3.06 $4.19
Georgia


exempts tipped employee law

Guam

State law doesn't allow tip credit $ 5.75

Hawaii
$7.25 $0.25
$7.00 More than $20
Idaho*
$7.25 $3.90 $3.35
More than $30
Illinois*
$8.00 $3.20
$4.80 $20
Indiana*
$7.25 $5.12
$2.13 Not specified
Iowa*
$7.25 $2.90
$4.35 More than $30
Kansas*
$2.65 $1.06
$1.59 More than $20
Kentucky*
$7.25 $5.12 $2.13 More than $30
Maine*
$7.50 50%
$50%
More than $30
Maryland*
$7.25 $3.62
$3.63 More than $30
Massachusetts*
$8.00 $5.37 $2.63 More than $20
Michigan*
$7.40 $4.75
$2.65 Not specified
Minnesota:

State law doesn't allow tip credit

large employer


$6.15 Enterprise with annual receipts of $625,000 or more.
small employer


$5.25
Enterprise with annual receipt less than $625,000.
Mississippi



No state minimum wage laws
Missouri*
$7.25 $3.62 $3.63 Not specified
Montana:
$6.90
State law doesn't allow tip credit

Business with gross annual sales of $110,000 or less, not covered by FLSA


$4.00

Nebraska*
$7.25 $5.12
$2.13 Not specified
Nevada:
$7.55
State law doesn't allow tip credit

Without qualified 
health plan


$7.55
With qualified health plan

$6.55

New Hampshire*
$7.25 55%
45%
More than $30
New Jersey*
$7.25 $5.12
Listed max. credit is the total amount allowable for tips, food and lodging combined, not for tips alone as in other states.
$2.13 Not specified

New Mexico
$7.50
$5.37
$2.13
More than $30
New York*:
$7.25

Not specified

ALL NY FIGURES BELOW ARE UNDER REVIEW
ALL NY FIGURES BELOW ARE UNDER REVIEW ALL NY FIGURES BELOW ARE UNDER REVIEW
Building service

None
$7.25

Restaurant industry:




Food service workers

$2.65
$4.60
All other workers:




Employees averaging between $1.60 and $2.30 per hour in tips.
$1.60
$5.65
Employees averaging $2.30 per hour or more in tips.
$2.30 $4.95

Hotel industry:




Food service workers

$2.65
$4.60
All other workers (all year and resort hotels):



Employees averaging between $1.60 and $2.30 per hour in tips
$1.60
$5.65
Employees averaging $2.30 per hour or more in tips
$2.30 $4.95
All other workers averaging more than $4.05 per hour in tips
$2.95
$4.30
Chambermaids (Resort Hotels only)



Chambermaids averaging between $1.10 and $4.05 per hour in tips
$1.10 $6.15

Employees averaging $4.05 per hour or more in tips
$2.30 $4.95

Miscellaneous Industries:



Employees averaging between $1.10 and $4.05 per hour in tips
$1.10 $6.15

Employees averaging more than $1.75 per hour in tips
$1.75 $5.50

North Carolina*
$7.25 $5.12
Tip credit
not permitted unless the employer obtains from each employee, monthly or for each pay period, a signed certification of the amount of tips received.
$2.13 More than $20
North Dakota*
$7.25 $2.39
$4.86 More than $30
Ohio*
$7.30 $3.65
$3.65
More than $30
Only for employers who gross more than $267,000 a year. For companies grossing $255,000 or less a year the minimum wage is $6.55  per hour and will increase to $7.25 per hour July 24, 2009
Oklahoma*:
$7.25 $3.62
Listed max. credit is the total amount allowable for tips, food and lodging combined, not for tips alone as in other states.
$3.63 Not specified
For employers with fewer than 10 full time employees at any one locations who have a gross annual sales of $100,000 or less:

50%
$2.00

Oregon

State law doesn't allow tip credit $8.40
Rises with inflation.
Pennsylvania *
$7.25 $4.42 $2.83 More than $30
Puerto Rico
not permitted for all occupations
$3.61 Varies per industry.
Restaurant, bar and soda
fountain ind.

permitted
$3.70
Guest house industry

permitted
$2.75 only for employees who were hired after July 27, 1998.For hotel waiters and bellboys, the minimum wage is $2.50 or $2.25, depending on whether annual gross income is $362,500 or more or less than this amount.
Rhode Island*
$7.40 $4.51 $2.89 Not specified
South Carolina



No state minimum wage laws
South Dakota*
$7.25 $5.12
Listed max. credit is the total amount allowable for tips, food and lodging combined, not for tips alone as in other states.
$2.13 More than $35
Tennessee



No state minimum wage laws
Texas*
$7.25 $5.12 $2.13 More than $20
Utah*
$6.55 $4.42 $2.13 More than $30
Vermont*
Employees in hotels, motels, tourist places, and restaurants who customarily and regularly receive tips for direct and personal customer service.
$8.06
$4.15
$3.91
More than $120
Virginia*
$7.25 up to 100% of MW
$0.0 if tips equal MW
Not specified
Virgin Islands*:




Tourist service and restaurant industries
$6.15 50% $3.075 Not specified
All other industries:
$6.15 None $4.65
Washington $8.55
State law doesn't allow tip credit 8.55 Rises with inflation.
West Virginia*
$7.25 $1.45
$5.80 Not specified
For employers with six or more employees and for state agencies.
Wisconsin*
$7.25 $4.92 $2.33 Not specified
$2.13 may be paid to employees under 20 and who have been in employment status with a particular employer for 90 or fewer consecutive calendar days from the date of initial employment.
Wyoming*
$5.15 $3.02 $2.13 More than $30


* Tip Credit permitted if the combined amount of tip and wage is at least 50 cents more than the applicable minimum wage.

Do You Get a Fair Pay?

Check your salary: compare your earnings against what other people get for the same job in the same state with our free, independent Salary Calculator. In return, to keep our Calculator updated, share your Pay and Job Info and fill out our anonymous Salary Survey.