Minimum Wages for Tipped Employees

January 1, 2007

**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)	$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			$7.50
Guam			$5.15
Minnesota:
Large employer 2			$6.15
Small employer 2			$5.25
Montana:
Business with gross annual sales over $110,000			$6.15
Business with gross annual sales of $110,000 or less			$4.00
Nevada			$6.15	Without a qualified health plan
			$5.30	With a qualified health plan provided
Oregon			$7.80 3
Washington			$7.93 4
Minimum rate lower for tipped employees than for non-tipped
New Mexico 5	$5.60	$3.47	$2.13	More than $30
Puerto Rico 6
STATE LAW ALLOWS TIP CREDIT
Arizona	$6.75	$3.00	$3.75	Not specified
Arkansas	$6.25	58%	42%	Not specified
Colorado	$6.85	$3.02	$3.83	More than $30
Connecticut	$7.65	29.3%	$5.41	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	$7.65
Hotel, restaurant		$2.24	$5.41
Bartenders		8.2%	$7.02
Any other industry		$0.35	$7.30
Delaware	$6.65	$4.42	$2.23	More than $30
District of Columbia	$7.00	$4.23	$2.77	Not specified
Florida	$6.67	$3.02	$3.65
Hawaii	$7.25	$0.25	$7.00	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	$6.50	$2.60	$3.90	$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	$6.75	$3.37	$3.38	More than $20
Maryland	$6.15	Up to 50%	$3.075	More than $30
Massachusetts	$7.50	$4.87	$2.63	More than $20
Michigan	$6.95	$4.30	$2.65	Not specified
Missouri	$6.50	Up to 50%	$3.25	Not specified
Nebraska	$5.15	$3.02	$2.13	Not specified
New Hampshire	$5.15	45%	$2.38	More than $20
New Jersey	$7.15	$5.02 7	$2.13	Not specified
New York	$7.15			Not specified
Building service		None	$7.15
Restaurant industry
Food service workers		$2.55	$4.60
All other workers
Employees averaging between $1.60 and $2.30 per hour in tips.		$1.60	$5.55
Employees averaging $2.30 per hour or more in tips.		$2.30	$4.85
Hotel industry
Food service workers		$2.55	$4.60
All other workers (all year and resort hotels)
Employees averaging between $1.60 and $2.30 per hour in tips		$1.60	$5.55
Employees averaging $2.30 per hour or more in tips		$2.30	$4.85
All other workers averaging more than $4.05 per hour in tips		$2.85	$4.30
Chambermaids (Resort Hotels only)
Chambermaids averaging between $1.10 and $4.05 per hour in tips		$1.10	$6.05
Employees averaging $4.05 per hour or more in tips		$2.30	$4.85
Miscellaneous Industries
Employees averaging between $1.10 and $4.05 per hour in tips		$1.10	$6.05
Employees averaging more than $1.75 per hour in tips		$1.75	$5.40
North Carolina 8	$6.15	$3.02	$2.13	More than $20
North Dakota	$5.15	33%	$3.45	More than $30
Ohio 9	$6.85	50%	$3.43	More than $30
Oklahoma 10	$5.15	50% 7	$2.58	Not specified
Pennsylvania	$6.25	$3.42	$2.83	More than $30
Rhode Island	$7.40	$4.51	$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.	$7.53	$3.88	$3.65	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 11	$5.85	20%	$4.68	Not specified
Wisconsin 12	$6.50	$4.17	$2.33	Not specified
Wyoming	$5.15	$3.02	$2.13	More than $30

The following six states, not included in table, do not have State minimum wage laws: Alabama, Arizona, Louisiana , Mississippi, South Carolina, and Tennessee. Also not included is Georgia, which exempts tipped employee 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 West Virginia . For employers with six or more employees and for state agencies.

12 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 2006; unless otherwise stated, the information reflects requirements that were in effect, or would take effect, as of January 1, 2007.