Skip to page content
Wage and Hour Division
Bookmark and Share

Wage and Hour Division (WHD)

Minimum Wages for Tipped Employees

January 1, 2004

Clickable map of America  
 

Montana Idaho Alaska Hawaii Puerto Rico Washington Oregon California Nevada Arizona Utah Wyoming Colorado New Mexico Texas North Dakota South Dakota Nebraska Kansas Oklahoma Minnesota Iowa Missouri Arkansas Louisiana Mississippi Alabama Tennessee Florida Georgia South Carolina North Carolina Wisconsin Illinois Kentucky Indiana Ohio Michigan North Carolina Virginia West Virginia District of Columbia Maryland Delaware Rhode Island Pennsylvania Maryland Maine New Hampshire Vermont Connecticut Massachusetts Rhode Island Delaware New York DistrictColumbia Guam VirginIslands NewJersey American Samoa

Table of Minimum Hourly Wages for Tipped Employees by State

Jurisdiction

Future
Effective Date

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)

 

$5.15

$3.02

$2.13

More than $30

STATE LAW DOES NOT ALLOW TIP CREDIT

Minimum rate same for tipped and non-tipped employees

Alaska

 

 

 

$7.15

 

California

 

 

 

$6.75

 

Guam

 

 

 

$5.15

 

Minnesota:

         

Large employer 2

 

 

 

$5.15

 

Small employer 2

 

 

 

$4.90

 

Montana:

         

Business with gross annual sales over $110,000

 

 

 

$5.15

 

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

 

 

 

$4.00

 

Nevada

 

 

 

$5.15

 

Oregon

 

 

 

$7.05 3

 

Washington

 

 

 

$7.16 4

 

Minimum rate lower for tipped employees than for non-tipped 

New Mexico 5

 

 

 

$2.575

More than $30

Puerto Rico 6

 

 

 

   

STATE LAW ALLOWS TIP CREDIT

Arkansas

 

$5.15

50%

$2.575

Not specified

Colorado

 

$5.15

$3.02

$2.13

More than $30

Connecticut

 

$7.10

 

 

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

$7.10

 

Hotel, restaurant

 

 

29.3%

$5.02

 

Bartenders

 

 

8.2%

$6.52

 

Any other industry

 

 

$0.35

$6.75

 

Delaware

 

$6.15

$3.92

$2.23

More than $30

District of Columbia

 

$6.15

55%

$2.77

Not specified

Hawaii

 

$6.25

$0.25

$6.00

More than $20

(Tip Credit permissible only for employees who average 75 cents an hour or more in tips)

Idaho

 

$5.15

35%

$3.35

More than $30

Illinois

 

1/1/05

$5.50

$6.50

$2.20

$2.60

$3.30

$3.90

$20

$20

Indiana

 

$5.15

$3.02

$2.13

Not specified

Iowa

 

$5.15

40%

$3.09

More than $30

Kansas

 

$2.65

40%

$1.59

More than $20

Kentucky

 

$5.15

$3.02

$2.13

More than $30

Maine

 

$6.25

50%

$3.13

More than $20

Maryland

 

$5.15

$2.77

$2.38

More than $30

Massachusetts

 

$6.75

$4.12

$2.63

More than $30

Michigan

 

$5.15

$2.50

$2.65

Not specified

Missouri

 

$5.15

Up to 50%

 

Not specified

Nebraska

 

$5.15

$3.02

$2.13

Not specified

New Hampshire

 

$5.15

50%

$2.58

More than $20

New Jersey

 

$5.15

   

Not specified

Hotel, restaurant

 

 

40% 7

$3.09

 

Chambermaid, non-seasonal hotel:

 

 

 

 

Without food and/or lodging

 

 

11%

$4.58

 

With food and/or lodging

 

 

16%

$4.33

 

Chambermaid, seasonal hotel:

 

 

 

 

Without food and/or lodging

 

 

20%

$4.12

 

With food and/or lodging

 

 

25%

$3.86

 

New York

 

$5.15

 

 

Not specified

Building service

 

 

None

$5.15

 

Restaurant industry

 

 

     

Food service workers

 

 

$1.85

$3.30

 

All other workers

         

Employees averaging between $1.15 and $1.64 per hour in tips.

 

 

$1.15

$4.00

 

Employees averaging $1.65 per hour or more in tips.

 

 

$1.65

$3.50

 

Hotel industry

 

 

     

Food service workers

 

 

$1.85

$3.30

 

All other workers (all year and resort hotels)

         

Employees averaging between $1.15 and $1.64 per hour in tips

 

 

$1.15

$4.00

 

Employees averaging $1.65 per hour or more in tips

 

 

$1.65

$3.50

 

All other workers (Resort Hotels only)

 

 

$2.05

$3.10

 

Chambermaids (Resort Hotels only)

         

Employees averaging $0.80 and $1.64 per hour in tips

 

 

$0.80

$4.35

 

Employees averaging $1.65 per hour or more in tips

 

 

$1.65

$3.50

 

Miscellaneous Industries

 

 

$0.80

$4.35

 

(profit making establishments only)

 

 

$1.25

$3.90

 

North Carolina 8

 

$5.15

$3.02

$2.13

More than $20

North Dakota

 

$5.15

33%

$3.45

More than $30

Ohio 9

 

$4.25

50%

$2.125

More than $30

Oklahoma 10

 

$5.15

50% 7

$2.58

Not specified

Pennsylvania

 

$5.15

$2.32

$2.83

More than $30

Rhode Island

 

$6.75

$3.86

$2.89

Not specified

South Dakota

 

$5.15

$3.02 7

$2.13

More than $35

Texas

 

$5.15

$3.02

$2.13

More than $20

Utah

 

$5.15

$3.02

$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.

 

01/01/2005

$6.75

$7.00

$3.17

$3.35

$3.58

$3.65

More than $30

More than $30
 

All other employees

 

 

None

$6.25

 

Virginia

 

$5.15

Actual amount received

 

Not specified

Virgin Islands

         

Tourist Service and Restaurant industries

 

$4.65

50%

$2.33

Not specified

All other industries

 

$4.65

None

$4.65

 

West Virginia

 

$5.15

20%

$4.12

Not specified

Wisconsin 11

 

$5.15

$2.42

$2.33

Not specified

Wyoming

 

$5.15

$3.02

$2.13

More than $30

The following seven states, not included in table, do not have State minimum wage laws: Alabama, Arizona, Florida, Louisiana , Mississippi, South Carolina, and Tennessee. Also not included is Georgia, which exempts tipped employee from its law.

Some states set sub-minimum 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 $500,000 or more; a small employer, less than $500,000.

3 Oregon. Beginning January 1, 2004, and annually thereafter, the rate will be adjusted for inflation by a calculation using the U.S. City Average Consumer Price Index for All Urban Consumers for All Items. The wage amount established will be rounded to the nearest five cents.

4 Washington. Beginning January 1, 2001, and annually thereafter, the rate will be adjusted for inflation by a calculation using the Consumer Price Index for urban wage earners and clerical workers for the prior year.

5 New Mexico. The minimum rate for non-tipped employees is $5.15 per hour.

6 Puerto Rico. Rates are established by industry wage orders (mandatory decrees) and vary by industry, occupation or other factors. However, for employers not covered by the FLSA, a new minimum rate equivalent to 70% of the Federal minimum wage ($3.61 of $5.15 per hour) supersedes all mandatory decree rates below that level, with the mandatory decree program being eventually phased out. A tip credit allowance is permitted in, 1) the restaurant, bar and soda fountain industry, which has a $3.70 minimum wage for all employees, and 2) the guest house industry, with a minimum of $2.75, but only for those employees who were hired after July 27, 1998. In addition, a lower rate is established for tipped occupations than for non-tipped in the hotel industry. For hotel waiters and bellboys, the minimum wage is $2.50 or $2.25, depending on whether annual gross income is $362,500 for more or less than this amount.

7 In New Jersey, Oklahoma, 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.

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

8 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.

9 Ohio. The minimum cash wage for tipped employees of employers with gross annual sales of $500,000 or less is $2.01 per hour. For non-tipped employees of such employers, the minimum rates are $3.35 for employers with sales from $150,000 to $500,000 and $2.80 with sales under $150.000.

10 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, with a 50% maximum tip credit.

11 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.

Prepared By:

Division of External Affairs
Wage and Hour Division
Employment Standards Administration
U.S. Department of Labor

This document was last revised in December 2003; unless otherwise stated, the information reflects requirements that were in effect, or would take effect, as of January 1, 2004.