Employment
🏛 DOL
Tip Credit and Tipped Employees
Employers may pay tipped employees as little as $2.13/hour if tips bring total hourly earnings to at least $7.25. If tips don't make up the difference, the employer must pay the gap. Many states have higher minimum cash wages for tipped workers.
Source Agency
US Dept of Labor — Wage and Hour Division
US Dept of Labor — Wage and Hour Division
Last Verified
March 1, 2026
March 1, 2026
Next Review
May 30, 2026
May 30, 2026