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Wage and Hour Division (WHD)

Minimum Wages for Tipped Employees

January 1, 2014

Historical Tables



 

State requires employers to pay workers full state minimum wage before tips

 

State requires employers to pay workers above federal tipped minimum wage

 

State requires employers to pay workers as low as federal tipped minimum wage ($2.13/hr.)



Table of Minimum Hourly Wages for Tipped Employees, by State

Jurisdiction

Basic Combined Cash & Tip Minimum Wage Rate

Maximum Tip Credit Against Minimum Wage

Minimum Cash Wage 1

Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified)

FEDERAL: Fair Labor Standards Act (FLSA)

$7.25

$5.12

$2.13

More than $30

State requires employers to pay workers full state minimum wage before tips

Alaska

 

 

$7.75

 

California

 

 

$8.00

 

Guam

 

 

$6.55

 

Minnesota:

       

Large employer 2

 

 

$6.15

 

Small employer 2

 

 

$5.25

 

Montana:

       

Business with gross annual sales over $110,000

 

 

$7.90

 

Business with gross annual sales of $110,000 or less

 

 

$4.00

 

Nevada

 

 

$8.25

$7.25

With no health insurance benefits provided by employer and received by employee

With health insurance benefits provided by employer and received by employee

Oregon

 

 

$9.10

 

Washington

 

 

$9.32

 

State requires employers to pay workers above federal tipped minimum wage 

Arizona

$7.90

$3.00

$4.90

Not specified

Arkansas

$6.25

$3.62

$2.63

More than $20

Colorado

$8.00

$3.02

$4.98

More than $30

Connecticut

$8.70

 

 

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

Hotel, restaurant

 

34.6% ($3.01)

$5.69

 

Bartenders who customarily receive tips

 

15.6% ($1.36)

$7.34

 

Delaware

$7.25

$5.02

$2.23

More than $30

District of Columbia

$8.25

$5.48

$2.77

Not specified

Florida

$7.93

$3.02

$4.91

 

Hawaii

$7.25

$0.25

$7.00

More than $20

(Tip Credit in Hawaii is permissible if the combined amount the employee receives from the employer and in tips is at least 50 cents more than the applicable minimum wage)

Idaho

$7.25

$3.90

$3.35

More than $30

Illinois

$8.25

40%

$4.95

$20

Iowa

$7.25

$2.90

$4.35

More than $30

Maine

$7.50

50%

$3.75

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

Missouri

$7.50

$3.75

$3.75

Not specified

New Hampshire

$7.25

55%

45%

More than $30

New York

$8.00 (Effective 12/31/2013)

 

 

Not specified

Food service workers

 

$3.00

$5.00

 

Service Employees

 

$2.35

$5.65

 

Service Employees in Resort Hotels if tips average at least $4.50 per hour

 

$3.10

$4.90

 

North Dakota

$7.25

33%

$4.86

More than $30

Ohio 5

The increased minimum wage will apply to employees of businesses with annual gross receipts of more than $292,000 per year.

$7.95

$3.97

$3.98

More than $30

Pennsylvania

$7.25

$4.42

$2.83

More than $30

Rhode Island

$8.00

$5.11

$2.89

Not specified

Vermont
Employees in hotels, motels, tourist places, and restaurants who customarily and regularly receive tips for direct and personal customer service.

$8.73

$4.50

$4.23

More than $120
 

Wisconsin 8

$7.25

$4.92

$2.33

Not specified

West Virginia 7

$7.25

20%

$5.80

Not specified

State requires employers to pay workers as low as federal tipped minimum wage ($2.13/hr.) 

Alabama 9

 

 

$2.13

 

Georgia 9

 

 

$2.13

 

Indiana

$7.25

$5.12

$2.13

Not specified

Kansas

$7.25

$5.12

$2.13

More than $20

Kentucky

$7.25

$5.12

$2.13

More than $30

Louisiana 9

 

 

$2.13

 

Mississippi 9

 

 

$2.13

 

North Carolina 4

$7.25

$5.12

$2.13

More than $20

Nebraska

$7.25

$5.12

$2.13

Not specified

New Jersey

$8.25

$6.12 3

$2.13

Not specified

New Mexico

  $7.50

  $5.37

$2.13

More than $30

Oklahoma 6

$7.25

$5.12

$2.13

Not specified

Puerto Rico

$7.25

$5.12

$2.13

More than $30

South Carolina 9

 

 

$2.13

 

South Dakota

$7.25

$5.12 3

$2.13

More than $35

Tennessee 9

 

 

$2.13

 

Texas

$7.25

$5.12

$2.13

More than $20

Utah

$7.25

$5.12

$2.13

More than $30

Virginia

$7.25

$5.12

$2.13

Not specified

Virgin Islands

$7.25

$5.12

$2.13

Not specified

Wyoming

$5.15

$3.02

$2.13

More 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. Such differential provisions are not displayed in this table.

FOOTNOTES

1 Other additional deductions are permitted, for example for meals and lodging, except as noted in footnote 8.

2 Minnesota. A large employer is an enterprise with annual receipts of $625,000 or more; a small employer, less than $625,000.

3 In New Jersey and South Dakota, the listed maximum credit is the total amount allowable for tips, food and lodging combined, not for tips alone as in other states.

Regarding Oklahoma, when a food and/or lodging credit is not involved, the wage tip credit is limited to $2.13 per hour.

In New Jersey, in specific situations where the employer can prove to the satisfaction of the Department of Labor and Workforce Development that the tips actually received exceed the creditable amount, a higher tip credit may be taken.

4 North Carolina. Tip credit is not permitted unless the employer obtains from each employee, monthly or for each pay period, a signed certification of the amount of tips received.

5 Ohio. For employees of employers with gross annual sales of less than $292,000, the state minimum wage is $7.25 per hour. For these employees, the state wage is tied to the federal minimum wage of $7.25 per hour which requires an act of Congress and the Presidentís signature to change.

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.

7 West Virginia. For employers with six or more employees and for state agencies.

8 Wisconsin. $2.13 per hour may be paid to 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.

9 The following states do not have State minimum wage laws: Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. Georgia exempts tipped employees under the law.

Prepared By:

Division of Communications
Wage and Hour Division
U.S. Department of Labor

This document was last revised in March 2014.