January 1, 2004

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:

 

 

7

 

 

Without food and/or lodging

 

 

11% 7

$4.58

 

With food and/or lodging

 

 

16% 7

$4.33

 

Chambermaid, seasonal hotel:

 

 

7

 

 

Without food and/or lodging

 

 

20% 7

$4.12

 

With food and/or lodging

 

 

25% 7

$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.