July 24, 2009

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)

 

$7.25

$5.12

$2.13

More than $30

STATE LAW DOES NOT ALLOW TIP CREDIT

Minimum rate same for tipped and non-tipped employees

Alaska

 

 

 

$7.25

 

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

 

 

 

$7.25

 

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

 

 

 

$4.00

 

Nevada

 

 

 

$7.55

$6.55

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

With health insurance benefits provided by employer and received by employee

Oregon

 

 

 

$8.40 3

 

Washington

 

 

 

$8.55 4

 

Minimum rate lower for tipped employees than for non-tipped 

New Mexico

 

  $7.50

  $5.37

$2.13

More than $30

Puerto Rico 5

 

 

 

   

STATE LAW ALLOWS TIP CREDIT

Arizona

 

$7.25

$3.00

$4.25

Not specified

Arkansas

 

$6.25

$2.62

$3.63

More than $20

Colorado

 

$7.28

$3.02

$4.26

More than $30

Connecticut

 

$8.00

31.0%

$5.52

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

 

 

$2.52

$5.52

 

Bartenders

 

 

11%

$7.12

 

Any other industry

 

 

$0.35

$7.65

 

Delaware

 

$7.25

$5.02

$2.23

More than $30

District of Columbia

 

$8.25

$5.48

$2.77

Not specified

Florida

 

$7.25

$3.02

$4.23

 

Hawaii

 

$7.25

$0.25

$7.00

More than $20

(Tip Credit 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

 

$8.00

40%

$4.80

$20

Indiana

 

$7.25

$5.12

$2.13

Not specified

Iowa

 

$7.25

$2.90

$4.35

More than $30

Kansas

 

$2.65

40%

$1.59

More than $20

Kentucky

 

$7.25

$5.12

$2.13

More than $30

Maine

 

$7.25

50%

$3.63

More than $20

Maryland

 

$7.25

up to 50%

$3.63

More than $30

Massachusetts

 

$8.00

$5.37

$2.63

More than $20

Michigan

 

$7.40

$4.50

$2.65

Not specified

Missouri

 

$7.25

$3.62

$3.63

Not specified

Nebraska

 

$7.25

$5.12

$2.13

Not specified

New Hampshire

 

$7.25

55%

45%

More than $30

New Jersey

 

$7.25

$5.12 6

$2.13

Not specified

New York

 

$7.25

 under review

 under review

Not specified

Building service

 

 

None

$7.25

 

Restaurant industry

 

 

     

Food service workers

 

 

$2.60

$4.65

 

All other workers

         

Employees averaging between $1.60 and $2.35 per hour in tips.

 

 

$1.60

$5.65

 

Employees averaging $2.35 per hour or more in tips.

 

 

$2.35

$4.90

 

Hotel industry

 

 

     

Food service workers

 

 

$2.60

$4.65

 

All other workers (all year and resort hotels)

         

Employees averaging between $1.60 and $2.35 per hour in tips

 

 

$1.60

$5.65

 

Employees averaging $2.35 per hour or more in tips

 

 

$2.35

$4.90

 

All other workers averaging more than $4.10 per hour in tips

 

 

$2.90

$4.35

 

Chambermaids (Resort Hotels only)

         

Chambermaids averaging between $1.10 and $4.10 per hour in tips

 

 

$1.10

$6.15

 

Employees averaging $4.10 per hour or more in tips

 

 

$2.35

$4.90

 

Miscellaneous Industries

 

 

 

 

 

Employees averaging between $1.10 and $1.75 per hour in tips

 

 

$1.10

$6.15

 

Employees averaging more than $1.75 per hour in tips

 

 

$1.75

$5.50

 

North Carolina 7

 

$7.25

$5.12

$2.13

More than $20

North Dakota

 

$7.25

33%

$4.86

More than $30

Ohio 8

 

$7.30

50%

$3.65

More than $30

Oklahoma 9

 

$7.25

50% 6

$3.63

Not specified

Pennsylvania

 

$7.25

$4.42

$2.83

More than $30

Rhode Island

 

$7.40

$4.51

$2.89

Not specified

South Dakota

 

$7.25

$5.12 6

$2.13

More than $35

Texas

 

$7.25

$5.12

$2.13

More than $20

Utah

 

$7.25

$5.12

$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.

 

$8.06

$4.15

$3.91

More than $120
 

All other employees

 

 

None

$6.25

 

Virginia

 

$7.25

Up to 100% of MW

$0.00 if tips equal MW

Not specified

Virgin Islands

         

Tourist Service and Restaurant industries

 

$6.15

50%

$3.075

Not specified

All other industries

 

$6.15

None

$4.65

 

West Virginia 10

 

$7.25

$1.45

$5.80

Not specified

Wisconsin 11

 

$7.25

$4.92

$2.33

Not specified

Wyoming

 

$5.15

$3.02

$2.13

More than $30

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

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 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 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 p.h.) 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 or more or less than this amount.

6 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.

7 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.

8 Ohio . The minimum cash wage for tipped employees of employers with gross annual sales in excess of $255,000 is $3.50 per hour (plus tips). For tipped employees of employers with gross annual sales of less than $255,000, the tipped employee hourly rate is $2.93 per hour (plus tips).

9 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.

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

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 :

Office of Performance, Budget, and Departmental Liaison
Wage and Hour Division
Employment Standards Administration
U.S. Department of Labor

This document was last revised in July 2009.