Minimum Wages for Tipped Employees (2024)

January 1, 2024

Historical Tables

Table of Minimum Hourly Wages for Tipped Employees, by State
JurisdictionBasic Combined Cash & Tip Minimum Wage RateMaximum Tip Credit Against Minimum WageMinimum Cash Wage 1Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified)
FEDERAL: Fair Labor Standards Act (FLSA)$7.25$5.12$2.13More than $30
State requires employers to pay tipped employees full state minimum wage before tips
Alaska$11.73
California:$16.00
Guam$9.25
Minnesota:2
Large employer: annual gross revenue of at least $500,000$10.85
Small employer: annual gross revenue of less than $500,000 $8.85
Montana:
Business with gross annual sales over $110,000$10.30
Business not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less$4.00

Nevada 10

Employees not offered qualifying health insurance by employer

$11.25
Employees offered qualifying health insurance by employer$10.25

Oregon 12

The Oregon minimum wage varies by region.

$14.20
Washington$16.28
State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour)
Arizona$14.35$3.00$11.35Not specified
Arkansas$11.00$8.37$2.63Not specified
Colorado$14.42$3.02$11.40More than $30
Connecticut 14$15.69
Hotel, restaurant$9.31$6.38Not specified
Bartenders who customarily receive tips$7.46$8.23
Delaware$13.25$11.02$2.23More than $30
District of Columbia15$17.00$9.00$8.00Not specified
Florida 17$12.00$3.02$8.98More than $30
Hawaii*$14.00$1.25$12.75More than $20
*Hawaii: Tip Credit in Hawaii is permissible if the combined amount the employee receives from the employer and in tips is at least $7.00 more than the applicable minimum wage.
Idaho$7.25$3.90$3.35More than $30
Illinois$14.0040% of the applicable minimum wage ($5.60)$8.40Not specified
Iowa$7.2540% of the applicable minimum wage ($2.90)$4.35More than $30
Maine$14.1550% of the applicable minimum wage ($7.07)$7.08More than $175
Maryland$15.00$11.37$3.63More than $30
Massachusetts$15.00$8.25$6.75More than $20
Michigan$10.33$6.4038% of the applicable minimum wage ($3.93)Not specified
Missouri$12.3050% of the applicable minimum wage ($6.15)$6.15Not specified
New Hampshire$7.25$3.98$3.27More than $30
New Jersey 3$15.13$9.87$5.26More than $30
New Mexico $12.00 $9.00$3.00More than $30
New York$15.00Tipped workers' minimum wage rates vary by region and type of employer. See New York's Minimum Wage: Overview.Not specified
North Dakota$7.2533% of the applicable minimum wage ($2.39)$4.86More than $30
Ohio 5

Employers with annual gross receipts of $385,000 or more

$10.45$5.20$5.25More than $30
Oklahoma 6$7.25$5.12$2.13Not specified
Pennsylvania$7.25$4.42$2.83$135 per month
Rhode Island$14.00$10.11$3.89More than $30
South Dakota$11.2050% of the applicable minimum wage ($5.60)$5.60More than $35
Vermont
An employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service.
$13.67$6.83$6.84More than $120
Virgin Islands$10.50$6.3040% of the applicable minimum wage ($4.20)Not specified
Wisconsin 8$7.25$4.92$2.33Not specified
West Virginia 7$8.7570% of the applicable minimum wage ($6.13)$2.62Not specified
State minimum cash wage payment is the same as that required under the federal Fair Labor Standards Act ($2.13/hr.)
Alabama 9$7.25$5.12$2.13More than $30
American SamoaSpecial minimum wage rates$2.13More than $30
Georgia 9$7.25$5.12$2.13More than $30
Indiana$7.25$5.12$2.13More than $30
Kansas 16$7.25$5.12$2.13Not specified
Kentucky$7.25$5.12$2.13More than $30
Louisiana 9$7.25$5.12$2.13More than $30
Mississippi 9$7.25$5.12$2.13More than $30
Nebraska$12.00$9.87$2.13Not specified
North Carolina 4$7.25$5.12$2.13More than $20
Commonwealth of the Northern Mariana Islands$7.25$5.12$2.13More than $30
Puerto Rico 18$9.50$7.37$2.13More than $30
South Carolina 9$7.25$5.12$2.13More than $30
Tennessee 9$7.25$5.12$2.13More than $30
Texas 16$7.25$5.12$2.13More than $20
Utah 16$7.25$5.12$2.13More than $30
Virginia$12.00$9.87$2.13More than $30
Wyoming 13$7.25$5.12$2.13More than $30

Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires. Some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not displayed in this table.

FOOTNOTES

1 Other additional deductions are permitted, for example for meals and lodging.

2 Minnesota. A large employer means an enterprise whose annual gross revenue is not less than $500,000. A small employer means an enterprise whose annual gross revenue is less than $500,000.

3 New Jersey. An employer is eligible to apply a tip credit against the full state minimum hourly wage only if the tipped employees have been informed in advance of the amount of the cash wage that is to be paid; the amount of the tip credit claimed by the employer; that all tips received must be retained by the employee, except in case of a valid tip pool arrangement limited to tipped employees; and of the requirements of the relevant New Jersey regulations.There is a minimum wage of $13.73 per hour for seasonal and small employers who employ fewer than 6 people.

4 North Carolina. Tip credit is not permitted unless the employer obtains from each employee, either monthly or each pay period, a signed certification of the amount of tips received. Employers must notify employees in advance of the amount of cash wages they will be paid and the amount that wages will be increased using the tip credit.

5 Ohio. For employees of employers with gross annual sales of less than $385,000, the state minimum wage is $7.25 per hour.

6 Oklahoma. For employers with fewer than 10 full-time employees at any one location who have gross annual sales of $100,000 or less, the basic minimum rate is $2.00 per hour. Employers with ten or more full time employees at any one location or annual gross sales over $100,000 that are not covered by the FLSA can take a tip credit of no more than 50 percent ($3.62) of the applicable minimum wage of $7.25. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.

7 West Virginia. The state minimum wage law applies only to employers with six or more employees and to state agencies.

8 Wisconsin. $5.90 per hour may be paid to "opportunity employees" -- employees who are not yet 20 years old and who have been in employment status with a particular employer for 90 or fewer consecutive calendar days from the date of initial employment. Additionally, a cash wage of $2.13 per hour may be paid to an opportunity employee who is a tipped employee.

9 The following states do not have state minimum wage laws: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia has a state minimum wage law, but it does not apply to tipped employees. Employers in these states must pay employees covered by the Federal Fair Labor Standards Act at least the federal minimum wage.

10 Nevada. Effective July 1, 2024, there will be a uniform minimum wage of $12.00 per hour for all employees.

11 US Virgin Islands. The Wage Board has been authorized since 2020 to increase the minimum cash wage for tipped tourist service and restaurant employees to a rate not greater than 45% of the minimum wage or less than the federal minimum wage for tipped employees.

12 Oregon. The standard minimum wage in Oregon is $14.20 per hour. The minimum wage in the Portland metro area is $15.45 per hour and the minimum wage in nonurban counties is $13.20 per hour.

13 Wyoming. The Wyoming minimum wage is $5.15 per hour. Employers must pay employees covered by the federal Fair Labor Standards Act at least the federal minimum wage.

14 Connecticut. The Connecticut minimum wage is adjusted annually based on a set formula.

15 District of Columbia. Pursuant to a ballot initiative, the minimum cash wage for tipped workers in the District of Columbia increased to $8.00 per hour on July 1, 2023 and it is scheduled to gradually increase annually until it reaches the full minimum wage. Additionally, the District of Columbia minimum wage is adjusted annually on July 1 based on a set formula.

16 The minimum wage laws in Kansas, Oklahoma (see note 6), Texas, and Utah exclude from coverage any employment that is subject to the federal Fair Labor Standards Act.

17 Florida. The Florida minimum wage is scheduled to increase by $1.00 every year on September 30th until reaching $15.00 on September 30, 2026.

18 Puerto Rico. The minimum wage will increase to $10.50 per hour on July 1, 2024, unless the Commonwealth issues a decree changing the amount.

Prepared By:

Division of Fair Labor Standards Act and Child Labor
Wage and Hour Division
U.S. Department of Labor

This document was last revised January 1, 2024.

The Wage and Hour Division tries to ensure that the information on this page is accurate but individuals should consult the relevant state labor office for official information.

Minimum Wages for Tipped Employees (2024)

FAQs

Minimum Wages for Tipped Employees? ›

To recap, the Fair Labor Standards Act specifies that the minimum wage for tipped employees is $2.13 per hour. The combined cash and tip minimum wage rate must equal up to $7.25 per hour.

How do tipped employees calculate minimum wage? ›

An employer must pay a tipped worker at least $2.13 per hour under the FLSA. An employer can take an FLSA tip credit equal to the difference between the direct wage, or the cash wage it pays directly to the tipped employee, and the federal minimum wage, which is currently $7.25 per hour.

What is the federal minimum wage for a tipped employee? ›

A tipped employee typically receives more than $30 per month in tips, according to the Department of Labor. Tipped employees must receive a minimum wage of $2.13 per hour, known as a cash wage. That cash wage is combined with tips to reach the federal minimum wage of $7.25 per hour.

What if a server does not make minimum wage? ›

If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the Federal minimum hourly wage, the employer must make up the difference. Some states have minimum wage laws specific to tipped employees.

What is the minimum cash wage that employers have to pay tipped workers in the state of Kentucky? ›

Employees are entitled to earn the full minimum wage per hour as set by federal or state law. Currently, the federal minimum wage is $7.25 an hour. Kentucky's minimum wage is the same. Therefore, tipped employees in Kentucky are entitled to earn $7.25 an hour.

How do you calculate how much someone tipped? ›

People generally tip 15-20% of the bill. To calculate tip multiply the total check by 1 plus the decimal percentage tip you'd like to leave. If you wanted to leave a 20% tip, you would add 1 to 0.20 to get 1.20. Multiply the bill by 1.20 to get the total amount you'd leave including tip.

How are server wages calculated? ›

Generally, servers earn hourly wages above the federal minimum wage thanks to tips from customers. However, if servers do not earn sufficient tips to bring their wages to $7.25 an hour (or the state-mandated minimum wage), the employer must make up the difference.

Which states have eliminated tipped minimum wage? ›

Nevada and Oregon are two of the seven states2 that have eliminated their tipped minimum wage, while District of Columbia residents overwhelmingly passed a ballot measure in 2022 to phase out D.C.'s tipped minimum wage by 2027.

When did tipped minimum wage start? ›

The Fair Labor Standards Act established a bare minimum floor for tipped wages only in 1966. The federal tipped minimum wage has remained at $2.13 an hour since 1991 and it is long overdue for an adjustment. Failing to raise the tipped minimum wage disproportionately hurts people of color and women.

What state has the lowest minimum wage? ›

These states and territories have the lowest minimum wage rates in the U.S.:
  • Georgia: $5.15.
  • Wyoming: $5.15.
  • West Virginia: $8.75.
  • Minnesota: $8.85 (for small employers, or those with an annual gross revenue of less than $500,000)
  • Puerto Rico: $9.50.
Apr 15, 2024

Why is minimum wage different for servers? ›

Things are different for tipped employees. Because they receive extra compensation, you can pay them a base “tipped minimum wage” of $2.13 per hour. Depending on state labor law, employers may be able to use a tip credit to reach toward the state or federal minimum wage obligation.

What happens if a server doesn't make tips? ›

If not enough tips are declared/recorded, then the restaurant must make up the difference to ensure they are making at least the minimum wage where they work.

What happens if I don't make enough tips? ›

The least the employer may pay you is the applicable minimum wage minus the “tip credit.” If you don't earn enough in tips in a particular shift to meet the minimum wage, your employer must pay the difference. States that do not allow a tip credit include California, Minnesota, and Oregon.

What is minimum wage for tipped employees in New York? ›

Combining Cash Wages and Tips

For example, the minimum wage for food service workers in New York City is $15.00 per hour. Their employers can satisfy the minimum wage by combining a cash wage of at least $10.00 with a tip allowance of no more than $5.00 per hour.

What is the minimum hourly rate employers can pay tipped employees assuming they can take the maximum allowable tip credit? ›

Tipped employees must receive an employer-paid wage of at least $2.13 per hour, more if the amount of tips received does not equal $5.12 an hour (based on the current minimum wage of $7.25). This means employers can claim a "tip credit" of up to $5.12 against the federal minimum wage.

What is the minimum wage for tipped employees in Arizona? ›

This means that Arizona employers will need to start paying the higher minimum wage ($14.35 per hour) for all hours worked after January 1, 2024. If employees are classified as tipped employees, their minimum wage is also increasing to $11.35 per hour.

Do tips affect regular rate of pay? ›

No. Since tips are voluntarily left for you by the customer of the business and are not being provided by the employer, they are not considered as part of your regular rate of pay when calculating overtime.

What is the maximum tip credit against minimum wage mean? ›

This is called a "tip credit" because the employer counts the employee's tips towards its obligation to pay minimum wage. Your employer may take a tip credit only if you regularly earn more than $30 in tips per month. The maximum tip credit allowed under federal law is $5.12.

How do you calculate tips per hour? ›

To split servers' tips based on hours worked, add up the total amount of tips and then divide that figure by the total hours worked. Then, multiply THAT figure by the hours an individual server worked.

What is the formula for calculating overtime pay? ›

According to the FLSA, the formula for calculating overtime pay is the nonexempt employee's regular rate of pay x 1.5 x overtime hours worked. This calculation may differ in states that have requirements, such as double time, which are more favorable to the employee.

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