{"id":60,"date":"2023-03-30T15:26:35","date_gmt":"2023-03-30T15:26:35","guid":{"rendered":"https:\/\/clockify.me\/learn\/?p=60"},"modified":"2026-08-10T00:00:00","modified_gmt":"2026-08-10T00:00:00","slug":"tipped-wages","status":"publish","type":"post","link":"https:\/\/clockify.me\/learn\/business-management\/tipped-wages\/","title":{"rendered":"Tipped Minimum Wage by State: Complete Guide for Employers (2026)"},"content":{"rendered":"\n<p class=\"translation-block wp-block-paragraph\">Giving tips for certain jobs like servers and bartenders is standard in the United States. These workers are considered tipped workers, which allows employers to pay them less than the federal minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In this tipped minimum wage guide for 2026, we\u2019ll cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">The most important information regarding wages for tipped employees in the US<\/li>\n\n\n\n<li class=\"translation-block\">Minimum wages for tipped employees across US states<\/li>\n\n\n\n<li class=\"translation-block\">Frequently asked questions about tipped minimum wage by state<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>*Note: State laws and regulations for tipped minimum wages have been checked and updated for 2026.&nbsp;<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group key-takeaways\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Tips are additional payments that customers leave to employees for their services.<\/li>\n\n\n\n<li class=\"translation-block\">A tip credit allows employers to count tips as part of an employee\u2019s earnings, letting employers pay a lower wage than usual.<\/li>\n\n\n\n<li class=\"translation-block\">The lowest amount an employer must pay is <strong>$2.13 per hour<\/strong>. Tipped employees must earn at least the hourly federal minimum wage ($7.25) each week, when wages combine with their tips.<\/li>\n\n\n\n<li class=\"translation-block\">Some states in the US use the federal tipped minimum wage, while others have a higher minimum wage for tipped employees than the federal one.<\/li>\n\n\n\n<li class=\"translation-block\">Some US states are gradually phasing out tip credit completely, lowering it each year until it equals the state minimum wage.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 id=\"general-information-about-tipped-minimum-wages-in-the-us\" class=\"wp-block-heading translation-block\">General information about tipped minimum wages in the US<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Before listing minimum tipped wages by state, we\u2019ll cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Who qualifies as a tipped employee<\/li>\n\n\n\n<li class=\"translation-block\">What qualifies as a tip<\/li>\n\n\n\n<li class=\"translation-block\">How tipped wages work<\/li>\n\n\n\n<li class=\"translation-block\">What\u2019s the federal minimum wage for tipped employees<\/li>\n<\/ul>\n\n\n\n<h3 id=\"who-qualifies-as-a-tipped-employee\" class=\"wp-block-heading translation-block\">Who qualifies as a tipped employee?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The US Department of Labor (DOL) defines tipped employees as those who regularly <a href=\"https:\/\/www.dol.gov\/general\/topic\/wages\/wagestips\" target=\"_blank\" rel=\"noreferrer noopener\">receive more than $30 in tips per month<\/a> while working. However, many states define tipped employees based on other specific criteria. Check your state laws to determine whether someone qualifies as a tipped employee.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Some examples of tipped employees include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Bartenders&nbsp;<\/li>\n\n\n\n<li class=\"translation-block\">Waiters\/Waitresses<\/li>\n\n\n\n<li class=\"translation-block\">Delivery drivers<\/li>\n\n\n\n<li class=\"translation-block\">Hairstylists<\/li>\n\n\n\n<li class=\"translation-block\">Other service industry positions<\/li>\n<\/ul>\n\n\n\n<h3 id=\"what-is-the-waiter-waitress-minimum-wage-by-state\" class=\"wp-block-heading translation-block\">What is the waiter\/waitress minimum wage by state?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Although most states have universal minimum wages, Connecticut, New York, and the Virgin Islands divide hospitality workers into multiple tiers.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State\/US territory<\/strong><\/th><th><strong>Worker category or employer size<\/strong><\/th><th><strong>State minimum wage<\/strong><\/th><th><strong>Maximum tip credit<\/strong><\/th><th><strong>Tipped minimum wage<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Conn.<\/strong><\/td><td>Hotel and restaurant staff<\/td><td>$16.94<\/td><td>$10.56<\/td><td>$6.38<\/td><\/tr><tr><td><strong>Conn.<\/strong><\/td><td>Bartenders<\/td><td>$16.94<\/td><td>$8.71<\/td><td>$8.23<\/td><\/tr><tr><td><strong>N.Y.<\/strong> (NYC, Long Island, Westchester)<\/td><td>Service employees (delivery, valet, etc.)<\/td><td>$17.00<\/td><td>$2.85<\/td><td>$14.15<\/td><\/tr><tr><td><strong>N.Y.<\/strong> (NYC, Long Island, Westchester)<\/td><td>Food service workers (waitstaff, bartenders, etc.)<\/td><td>$17.00<\/td><td>$5.65<\/td><td>$11.35<\/td><\/tr><tr><td><strong>N.Y.<\/strong> (Remainder of the state)<\/td><td>Service employees (delivery, valet, etc.)<\/td><td>$16.00<\/td><td>$2.70<\/td><td>$13.30<\/td><\/tr><tr><td><strong>N.Y.<\/strong> (Remainder of the state)<\/td><td>Food service workers (waitstaff, bartenders)<\/td><td>$16.00<\/td><td>$5.30<\/td><td>$10.70<\/td><\/tr><tr><td><strong>U.S. Virgin Islands<\/strong><\/td><td>Tourist service and restaurant employees<\/td><td>$12.00<\/td><td>$7.20<\/td><td>$4.80<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><br>Tipped minimum wage rates change annually in some states. Clockify by CAKE.com is a <a href=\"https:\/\/clockify.me\/features\/rates\">timekeeping software with adjustable rates<\/a> that makes implementing these changes hassle-free.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"660\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-1024x660.webp\" alt=\"Easy rate management in Clockify\" class=\"wp-image-6786\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-1024x660.webp 1024w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-300x193.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-768x495.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-1536x990.webp 1536w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify-18x12.webp 18w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Easy-rate-management-in-Clockify.webp 1799w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Easy rate management in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Set custom rates with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"what-qualifies-as-a-tip\" class=\"wp-block-heading translation-block\">What qualifies as a tip?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">According to the <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/tip-recordkeeping-and-reporting\" target=\"_blank\" rel=\"noreferrer noopener\">Internal Revenue Service (IRS)<\/a>, tips are optional or extra payments that customers give to employees as a token of appreciation for their services. The IRS further classifies tips as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Tips received through electronic payment (credit card, debit card, etc.)<\/li>\n\n\n\n<li class=\"translation-block\">Cash tips<\/li>\n\n\n\n<li class=\"translation-block\">Tips received from other employees (tip pools, tip splitting, or other tip-sharing agreements)<\/li>\n\n\n\n<li class=\"translation-block\">Non-cash tips (such as concert tickets or lottery tickets)<\/li>\n<\/ul>\n\n\n\n<h3 id=\"how-do-tipped-wages-work\" class=\"wp-block-heading translation-block\">How do tipped wages work?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In the United States, a tipped wage is the money the employer pays to employees who receive a significant portion of their pay from tips.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The US Department of Labor states that an employer is only required to pay a tipped employee<strong> $2.13 per hour in direct wages<\/strong> if the employee earns at least the <a href=\"https:\/\/www.dol.gov\/general\/topic\/wages\/minimumwage\" target=\"_blank\" rel=\"noreferrer noopener\">federal minimum wage<\/a> combined with tips.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In other words, if an employee makes a total of $7.25 per hour or more, you are allowed to pay them the tipped federal minimum of $2.13. This is because the tips cover the amount needed to meet the federal minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Note that some states have stricter minimum wage laws that overrule federal law.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">\n<div class=\"banner banner-dark clockify-gradient-default\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Track Employee Hours<\/h2>\n        <p class=\"translation-block !text-sm\">Keep tipped worker hours and simplify payroll with Clockify by CAKE.com.<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/default@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/default.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h3 id=\"what-is-tip-pooling\" class=\"wp-block-heading translation-block\">What is tip pooling?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tip pooling is a form of tip distribution that collects all employee tips into one lump sum (most commonly, a jar). Afterward, tips are divided (mostly equally, but not always) among the tipped employees.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tips can be split based on the hours worked, or a point system that determines the percentage of the tip pool someone receives. These points are distributed to all workers who helped during that shift.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">As an employer, you <strong>can<\/strong> require workers to participate in tip pooling. However, according to the <a href=\"https:\/\/www.ecfr.gov\/current\/title-29\/subtitle-B\/chapter-V\/subchapter-A\/part-531\/subpart-D\/section-531.54\" target=\"_blank\" rel=\"noreferrer noopener\">Code of Federal Regulations (CFR)<\/a>:&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"translation-block\">You<strong> must notify your employees<\/strong>.<\/li>\n\n\n\n<li class=\"translation-block\">You <strong>can\u2019t retain any tips <\/strong>for other purposes.<\/li>\n<\/ol>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">To implement tip pooling legally, you\u2019ll need to create an <strong>official tip pooling policy<\/strong> with information on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Whether the tip pooling is mandatory or voluntary<\/li>\n\n\n\n<li class=\"translation-block\">Which employees must participate<\/li>\n\n\n\n<li class=\"translation-block\">How much must each employee contribute to the \u201cpool\u201d<\/li>\n\n\n\n<li class=\"translation-block\">How you divide the tips<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In practice, tip pooling can prove to be quite tricky when it comes to financial audits and employee turnover.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Sports bar owner and our expert contributor, <a href=\"https:\/\/www.linkedin.com\/in\/angela-jones-2a1a24403\/\" target=\"_blank\" rel=\"noreferrer noopener\">Angela Jones,<\/a> states that the trickiest administrative burden is tracking tip pooling accurately enough to survive an audit. She also shared first-hand advice on reducing turnover in hospitality:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"560\" height=\"560\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Angela-Jones.webp\" alt=\"Angela Jones - Sports bar owner\" class=\"wp-image-6811\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Angela-Jones.webp 560w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Angela-Jones-300x300.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Angela-Jones-150x150.webp 150w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Angela-Jones-12x12.webp 12w\" sizes=\"auto, (max-width: 560px) 100vw, 560px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"translation-block wp-block-paragraph\"><em>\u201cBuild more predictable revenue streams alongside tipped income \u2014 things like trivia nights, poker events, and live music that drive consistent midweek traffic. When tipped employees see steadier, higher-volume nights rather than feast-or-famine shifts, the wage floor becomes far less of a flashpoint for staff turnover.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track labor costs with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"what-is-the-federal-minimum-wage-for-tipped-employees\" class=\"wp-block-heading translation-block\">What is the federal minimum wage for tipped employees?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>The federal minimum wage for tipped employees is $2.13 per hour<\/strong>. However, with their tips combined, tipped employees must earn at least $7.25 per hour in total.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">This is calculated on a weekly basis and<strong> <\/strong>can\u2019t be averaged out for a period longer than one workweek. If a person ever makes less than $7.25 per hour during their workweek, the employer must pay the difference.<\/p>\n\n\n\n<h3 id=\"what-is-a-tip-credit\" class=\"wp-block-heading translation-block\">What is a tip credit?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">A tip credit is an arrangement that lets employers pay tipped workers a lower hourly wage. This approach relies on customer tips to make up the rest of the federal minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">When paying a tipped employee, you can deduct the tips and pay out less than the federal minimum wage ($7.25 per hour). The lowest federal rate you must pay regardless of tips is $2.13 per hour. This amount is also called the <strong>minimum cash wage<\/strong>.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The dollar difference between the <strong>minimum cash wage<\/strong> (often $2.13) and the federal or state minimum wage (often $7.25) is called a<strong> tip credit <\/strong>\u2014 what you save by relying on tips. For most US states, $5.12 is the highest tip credit amount. On the other hand, some state laws propose higher amounts both for minimum wages and tip credit.<\/p>\n\n\n\n<p class=\"has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>Note:<\/strong> Tip credit must be calculated based on a fixed, 7-day workweek, and can\u2019t be averaged across a 2-week pay period.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tip credits are strictly enforced by the DOL, and accidental underpaying can result in back wages, penalties, and even class action lawsuits. Before you can claim tip credit, you have to <strong>clearly notify all tipped employees of how you claim tip credit.<\/strong> The notice can be verbal or written.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">You need to clearly communicate these 5 things to ensure your tip credit policy is legal:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"translation-block\">The exact direct cash wage you\u2019ll pay tipped workers<\/li>\n\n\n\n<li class=\"translation-block\">The exact tip credit amount you are claiming<\/li>\n\n\n\n<li class=\"translation-block\">That the tip credit you claim will never exceed the actual amount of tips they receive<\/li>\n\n\n\n<li class=\"translation-block\">That the employee gets to keep all their tips (except for valid tip-pooling arrangements)<\/li>\n\n\n\n<li class=\"translation-block\">That the tip credit won\u2019t apply unless this notice has been given to them<\/li>\n<\/ol>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If you do all of this, you are legally acting as a tip-credit employer.<\/p>\n\n\n\n<h3 id=\"federal-minimum-wage-example-calculation\" class=\"wp-block-heading translation-block\">Federal minimum wage example calculation<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Let\u2019s assume a server named Lucy works in a state that follows <strong>federal<\/strong> tip credit laws. Lucy made $50 in tips during a 30-hour workweek. Can her employer claim full tip credit?<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>$2.13 x 30 hours = $63.9 (tipped minimum wage for 30 hours)<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>$63.9 (30-hour tipped minimum) + $50 in tips = $113.9 (Lucy\u2019s total wages for the week)<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Here\u2019s the minimum amount Lucy should have earned for the 30-hour week, according to federal law:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>$7.25 (hourly minimum wage) x 30 hours = $217.5 (30-hour federal minimum wage)<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">We can clearly see that Lucy made less than the federal minimum of $7.25 per hour required by the <a href=\"https:\/\/clockify.me\/flsa-compliance\" target=\"_blank\" rel=\"noreferrer noopener\">Fair Labor Standards Act (FLSA)<\/a>. Her weekly tips didn\u2019t cover the federal minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Because federal law mandates that the employer must compensate the employee for the difference, in this case, here\u2019s what the employer must pay:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>$217.5 (federal minimum for 30 hours of work) &#8211; $50 (what Lucy made in tips) = $167.5<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In this case, Lucy\u2019s employer needs to pay her $167.5 for the 30-hour workweek. Divided by the hour, this would be a <strong>$ 5.58-per-hour direct payment<\/strong>. Her $50 in tips equates to $1.67 per hour (for the 30-hour week). Combined with the direct wages the employer must pay, $5.58 + $1.67 equals $7.25 per hour \u2014 which hits the federal minimum.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage-1024x512.webp\" alt=\"Federal tipped minimum wage\" class=\"wp-image-6787\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage-1024x512.webp 1024w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage-300x150.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage-768x384.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage-18x9.webp 18w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Federal-tipped-minimum-wage.webp 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Calculate payroll with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"how-to-calculate-overtime-for-tipped-employees\" class=\"wp-block-heading translation-block\">How to calculate overtime for tipped employees?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The first thing to do when <a href=\"https:\/\/clockify.me\/overtime-pay-calculators\">calculating overtime pay<\/a> is to check your state overtime laws.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The basic legally required overtime formula for tipped employees is:<\/p>\n\n\n\n<p class=\"has-text-align-center has-background translation-block wp-block-paragraph\" style=\"background-color:#e1f5fe\"><strong>(Full minimum wage \u00d7 1.5) \u2212 Applicable tip credit = Overtime cash wage<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If the calculation ever feels wrong or complicated, it\u2019s usually because the worker falls into one of these 3 exceptions:<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Daily overtime vs. weekly overtime<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Federal law only triggers overtime when a worker physically <strong>works more than 40 hours in a 7-day week<\/strong>. But state laws can override this with strict daily limits.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In states like California, overtime rates kick in after 8 hours in a single day. In Colorado, they kick in after 12 hours in a single day.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">A worker could work a single 14-hour shift on Saturday and then take the entire week off (totaling only 14 hours for the week). However, you still have to pay the person overtime for the hours worked past the daily threshold.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Dual job with multiple rates<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If an employee works two different jobs in the same restaurant at different pay rates, you have to calculate a \u201cblended rate.\u201d This is a weighted average of both jobs for the entire week. The 1.5 calculation must be based on that blended number.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Mandatory service charges aren&#8217;t tips<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If a restaurant automatically adds a 20% gratuity fee, the IRS and DOL <a href=\"https:\/\/www.irs.gov\/pub\/irs-news\/FS-15-08.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">view that money as a bonus or commission<\/a> paid by the restaurant.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">When that service charge is paid out to the server, it artificially increases their regular rate of pay for the week. The employer must <strong>recalculate the overtime rate based on the higher number<\/strong> \u2014 making overtime more expensive.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">To find out more about state-specific overtime laws in the US, make sure to read our articles:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/learn\/business-management\/overtime-laws\/\">Overtime Laws by State \u2014 Comprehensive Guide for 2025<\/a><\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/blog\/business\/is-overtime-taxed-more\/\">Is Overtime Taxed More? Everything You Need to Know<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The easiest way to handle overtime is to implement a <a href=\"https:\/\/clockify.me\/hospitality-time-clock\">time tracking system like Clockify<\/a>. This way, you catch every overtime hour in real time and tie it to a specific employee and workday.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"856\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify-1024x856.webp\" alt=\"Employee hour tracking in Clockify\" class=\"wp-image-6788\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify-1024x856.webp 1024w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify-300x251.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify-768x642.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify-14x12.webp 14w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Employee-hour-tracking-in-Clockify.webp 1103w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Employee hour tracking in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track overtime with Clockify<\/a><\/p>\n\n\n\n<h2 id=\"2026-tipped-minimum-wage-changes\" class=\"wp-block-heading translation-block\">2026 tipped minimum wage changes<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">2026 has brought significant changes for tipped workers and business owners.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Let\u2019s take a look at the most notable tipped minimum wage changes in 2026.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"937\" height=\"1024\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes-937x1024.webp\" alt=\"2026 Tipped Minimum Wage Changes\" class=\"wp-image-6789\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes-937x1024.webp 937w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes-274x300.webp 274w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes-768x840.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes-11x12.webp 11w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/2026-Tipped-Minimum-Wage-Changes.webp 1200w\" sizes=\"auto, (max-width: 937px) 100vw, 937px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"translation-block wp-block-paragraph\">Our expert contributor <a href=\"https:\/\/www.linkedin.com\/in\/lisa-stroeder-299b6b211\/\" target=\"_blank\" rel=\"noreferrer noopener\">Lisa Stroeder<\/a>, a licensed Ontario paralegal, states that the continually decreasing tip credit represents one of the biggest shifts in 2026:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Lisa-Stroeder.webp\" alt=\"Lisa Stroeder - a licensed Ontario paralegal\" class=\"wp-image-6812\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Lisa-Stroeder.webp 500w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Lisa-Stroeder-300x300.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Lisa-Stroeder-150x150.webp 150w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Lisa-Stroeder-12x12.webp 12w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"translation-block wp-block-paragraph\"><em>\u201cNumerous jurisdictions have tried to either eliminate tip credit or raise the amount of basic wage that companies are required to pay before tips are introduced. This sets a mathematical dilemma for small businesses that are already working on razor-thin margins.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<h3 id=\"new-york-city-minimum-wage-increased-to-17-per-hour\" class=\"wp-block-heading translation-block\">New York City minimum wage increased to $17 per hour<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Effective January 1, 2026, New York City\u2019s minimum wage is $17.00\/ hour.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">For tipped food service workers, employers have to pay at least $11.35 in cash wages. The maximum tip credit employers can claim in NYC is $5.65.<\/p>\n\n\n\n<h3 id=\"washington-d-c-minimum-wage-increased-to-18-40-per-hour\" class=\"wp-block-heading translation-block\">Washington, D.C. minimum wage increased to $18.40 per hour<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">On July 1, 2026, Washington, D.C.\u2019s minimum wage was increased to $18.40 per hour. The base cash wage for tipped employees will increase to $10.30 per hour.<\/p>\n\n\n\n<h3 id=\"tip-credit-has-been-removed-from-7-states\" class=\"wp-block-heading translation-block\">Tip credit has been removed from 7 states<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">As of 2026, <strong>7 states have completely prohibited employers from claiming tip credit<\/strong>. In these states, tips are treated strictly as additional income on top of the state\u2019s full minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In 2026, <a href=\"https:\/\/www.ncsl.org\/labor-and-employment\/state-minimum-wages\" target=\"_blank\" rel=\"noreferrer noopener\">states with no tip credit<\/a> are:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"translation-block\">Alaska<\/li>\n\n\n\n<li class=\"translation-block\">California<\/li>\n\n\n\n<li class=\"translation-block\">Minnesota<\/li>\n\n\n\n<li class=\"translation-block\">Montana<\/li>\n\n\n\n<li class=\"translation-block\">Nevada<\/li>\n\n\n\n<li class=\"translation-block\">Oregon<\/li>\n\n\n\n<li class=\"translation-block\">Washington<\/li>\n<\/ol>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In states like California and Washington, standard minimum wages are now climbing to $17+ per hour. Because there\u2019s no tip credit, restaurant owners now have to pay the full rate out of pocket. This has led to a massive rise in mandatory \u201cservice charges\u201d on restaurant checks, introduced to account for rising labor costs.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The right software can be a massive help when it comes to restaurant management. To find out the best one for your case, check out our restaurant app overview article:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/blog\/apps-tools\/restaurant-management-software\/\">9 Must-Try Restaurant Management Software<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"chicago-slowed-down-tip-credit-elimination\" class=\"wp-block-heading translation-block\">Chicago slowed down tip credit elimination<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In 2023, the city of Chicago passed the One Fair Wage ordinance that should gradually phase out the tip credit entirely by 2028. The first scheduled reduction was set to take effect on July 1, 2026.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">However, the Chicago City Council passed a compromise in May 2026 to <a href=\"https:\/\/natlawreview.com\/article\/chicago-pauses-its-tip-credit-phaseout\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>pause the phaseout for 2 years<\/strong><\/a>. In short, Chicago made the following decisions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">For employers with 21+ employees, the phaseout won\u2019t resume until 2028. The full tip credit elimination is pushed to 2030.<\/li>\n\n\n\n<li class=\"translation-block\">For employers with 4\u201320 employees, the tip credit will remain intact until 2030.&nbsp; Full tip credit elimination is delayed until 2033.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"the-80-20-30-rule-changes\" class=\"wp-block-heading translation-block\">The 80\/20\/30 rule changes<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">For years, the Department of Labor enforced the <strong>80\/20\/30 rule<\/strong> that mandated that tip credit was applicable only to workers who worked 20% or less of the time on non-tipped tasks.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">However, a <a href=\"https:\/\/law.justia.com\/cases\/federal\/appellate-courts\/ca5\/23-50562\/23-50562-2024-08-23.html\" target=\"_blank\" rel=\"noreferrer noopener\">recent ruling by the Fifth Circuit Court<\/a> has overturned that rule. As a result, in 2026, this rule no longer applies in Texas, Louisiana, and Mississippi. Employers in those states have far more flexibility in assigning side work without losing the tip credit. Employers in other parts of the country are still navigating complex compliance risks.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">\n<div class=\"banner banner-light clockify-gradient-templates\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Keep up with minimum wage changes<\/h2>\n        <p class=\"translation-block !text-sm\">Change employee rates in seconds and maintain labor law compliance.<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/features\/rates\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/templates@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/templates.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"tipped-minimum-wage-by-state-for-2026\" class=\"wp-block-heading translation-block\">Tipped minimum wage by state for 2026<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In this section, we\u2019ll examine all state-individual tipped minimum wages for 2026.<\/p>\n\n\n\n<h3 id=\"states-that-require-you-to-pay-the-full-state-minimum-wage-before-tips\" class=\"wp-block-heading translation-block\">States that require you to pay the full state minimum wage before tips<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">According to <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/state\/minimum-wage\/tipped\" target=\"_blank\" rel=\"noreferrer noopener\">DOL Minimum Wages for Tipped Employees<\/a>, these seven states require you to <strong>pay tipped employees the full state minimum wage before tips<\/strong>. In these states, the tipped worker minimum wage and the standard minimum wage are the same.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State<\/strong><\/th><th><strong>Minimum Wage Rate &amp; Tipped Minimum Wage&nbsp;<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Alaska<\/strong><\/td><td>$14.00<\/td><\/tr><tr><td><strong>Calif.<\/strong><\/td><td>$16.90<\/td><\/tr><tr><td><strong>Minn.<\/strong><\/td><td>$11.41<\/td><\/tr><tr><td><strong>Mont.<\/strong><\/td><td>$10.85<\/td><\/tr><tr><td><strong>Nev.<\/strong><\/td><td>$12.00<\/td><\/tr><tr><td><strong>Ore.*<\/strong><\/td><td>$15.55<\/td><\/tr><tr><td><strong>Wash.<\/strong><\/td><td>$17.13<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong><em>*<\/em><\/strong><em>The rates for Oregon can vary slightly depending on whether the worker is in the Portland metro area or nonurban counties.<\/em><strong><em> <\/em><\/strong><em>Washington, D.C. is also phasing out its tip credit. Washington, D.C.\u2019s tip credit will fully match its standard minimum wage in 2027.<\/em><\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">To learn more about your state\u2019s specific labor laws, make sure to check out:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/state-labor-laws\/\">State Labor Laws Guides<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"states-with-the-tipped-minimum-wage-above-the-federal-tipped-minimum-wage\" class=\"wp-block-heading translation-block\">States with the tipped minimum wage above the federal tipped minimum wage<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">According to the DOL, 29 states require employers to pay wages above the federal tipped minimum wage ($2.13 per hour). The states mentioned in the previous chapter also fall into this category.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State<\/strong><\/th><th><strong>Tipped minimum wage rate (total)<\/strong><\/th><th><strong>Maximum tip credit<\/strong><\/th><th><strong>Minimum cash wage<\/strong><\/th><th><strong>Definition of a tipped employee<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Ariz.<\/strong><\/td><td>$15.15<\/td><td>$3.00<\/td><td>$12.15<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Ark.<\/strong><\/td><td>$11.00<\/td><td>$8.37<\/td><td>$2.63<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Colo.<\/strong><\/td><td>$15.16<\/td><td>$3.02<\/td><td>$12.14<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Conn.*<\/strong><\/td><td>$16.94&nbsp;<\/td><td>$10.56 for hotel or restaurant staff<br>$8.71 for bartenders<\/td><td>$6.38 for hotel or restaurant staff<br>$8.23 for bartenders<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Del.<\/strong><\/td><td>$15.00<\/td><td>$12.77<\/td><td>$2.23<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>D.C.*<\/strong><\/td><td>$18.40<\/td><td>$8.10<\/td><td>$10.30<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Fla.*<\/strong><\/td><td>$14.00<\/td><td>$3.02<\/td><td>$10.98<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Hawaii*<\/strong><\/td><td>$16.00<\/td><td>$1.25<\/td><td>$14.75<\/td><td>Not specified<br><\/td><\/tr><tr><td><strong>Idaho<\/strong><\/td><td>$7.25<\/td><td>$3.90<\/td><td>$3.35<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Ill.<\/strong><\/td><td>$15.10<\/td><td>40% of the applicable minimum wage ($6.00)<\/td><td>$9.00<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Iowa<\/strong><\/td><td>$7.25<\/td><td>40% of the applicable minimum wage ($2.90)<\/td><td>$4.35<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Maine<\/strong><\/td><td>$15.10<\/td><td>50% of the applicable minimum wage ($7.55)<\/td><td>$7.55<\/td><td>Earns more than $191 in tips (monthly)<\/td><\/tr><tr><td><strong>Md.<\/strong><\/td><td>$15.00<\/td><td>$11.37<\/td><td>$3.63<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Mass.<\/strong><\/td><td>$15.00<\/td><td>$8.25<\/td><td>$6.75<\/td><td>Earns more than $20 in tips (monthly)<\/td><\/tr><tr><td><strong>Mich.<\/strong><\/td><td>$13.73<\/td><td>$8.24<\/td><td>$5.49<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Miss.<\/strong><\/td><td>$15.00<\/td><td>50% of the applicable minimum wage ($7.50)<\/td><td>$7.50<\/td><td>Not specified<\/td><\/tr><tr><td><strong>N.H.<\/strong><\/td><td>$7.25<\/td><td>$3.98<\/td><td>$3.27<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>N.J.*<\/strong><\/td><td>$15.92<\/td><td>$9.87<\/td><td>$6.05<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>N.M.<\/strong><\/td><td>$12.00<\/td><td>$9.00<\/td><td>$3.00<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>N.Y.<\/strong><\/td><td>$17.00 (NYC, Long Island, and Westchester)<br>$16.00 (remainder of NY state)<\/td><td>Tipped workers\u2019 minimum wage rates <a href=\"https:\/\/dol.ny.gov\/minimum-wage\" target=\"_blank\" rel=\"noreferrer noopener\">vary by region and type of employer<\/a><\/td><td>Varies<\/td><td>Not specified<\/td><\/tr><tr><td><strong>N.D.<\/strong><\/td><td>$7.25<\/td><td>33% of the applicable minimum wage ($2.39)<\/td><td>$4.86<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Ohio*<\/strong><\/td><td>$11.00<\/td><td>$5.50<\/td><td>$5.50<\/td><td>Earns more than $30 in tips<\/td><\/tr><tr><td><strong>Okla.*<\/strong><\/td><td>$7.25<\/td><td>$5.12<\/td><td>$2.13<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Pa.<\/strong><\/td><td>$7.25<\/td><td>$4.42<\/td><td>$2.83<\/td><td>Earns more than $135 in tips (monthly)<\/td><\/tr><tr><td><strong>R.I.<\/strong><\/td><td>$16.00<\/td><td>$12.11<\/td><td>$3.89<\/td><td>Earns more than $30 in tips<\/td><\/tr><tr><td><strong>S.D.<\/strong><\/td><td>$11.85<\/td><td>50% of the applicable minimum wage ($5.92)<\/td><td>$5.93<\/td><td>Earns more than $35 in tips (monthly)<\/td><\/tr><tr><td><strong>Vt.<\/strong><\/td><td>$14.42<\/td><td>50% of the applicable minimum wage ($7.21)<\/td><td>$7.21<\/td><td>Earns more than $120 in tips (monthly)<\/td><\/tr><tr><td><strong>Wis.*<\/strong><\/td><td>$7.25<\/td><td>$4.92<\/td><td>$2.33<\/td><td>Not specified<\/td><\/tr><tr><td><strong>W.Va.*<\/strong><\/td><td><br>$8.75<\/td><td>70% of the applicable minimum wage ($6.13)<\/td><td>$2.62<\/td><td>Not specified<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong><br><\/strong><strong>*Exceptions and additional rules:<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Connecticut<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum wage is adjusted annually, based on a formula.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>District of Columbia<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Employers have to pay a minimum cash wage of at least 56% of the standard minimum wage. Only the remaining difference can be claimed as tip credit.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Florida<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum wage is scheduled to increase by $1.00 every year on September 30, until it reaches $15.00 on September 30, 2026.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Hawaii<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tip Credit in Hawaii is only allowed if the combined wage + tip amount is at least $7.00 more than the applicable minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Michigan<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum direct cash wage for tipped employees in Michigan is scheduled to increase each year, until reaching 50% of the state minimum wage in <strong>2031<\/strong>. The minimum wage is also scheduled to increase on <strong>January 1, 2027<\/strong> (to $15.00 per hour). After this, it will be adjusted annually based on a formula.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>New Jersey<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum wage for employers with fewer than 6 people and seasonal employees is <strong>$15.23<\/strong> per hour. Additionally, tip credit is allowed only if you inform your tipped employees in advance about:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Exact cash wage they\u2019ll be paid<\/li>\n\n\n\n<li class=\"translation-block\">Amount of tip credit you\u2019ll claim<\/li>\n\n\n\n<li class=\"translation-block\">The fact that you retain all tips, unless you have a valid tip pool<\/li>\n\n\n\n<li class=\"translation-block\">Other relevant New Jersey regulations<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Ohio<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If your gross annual sales are less than $405,000, the state minimum wage for your employees is $7.25 per hour.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Oklahoma<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If you employ up to 10 full-time employees <strong>and<\/strong> have $100,000 or less in gross annual sales, the minimum rate for workers is $2.00 per hour.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If you employ 10 or more full-time employees, <strong>or<\/strong> your annual gross sales are $100,000+, you can claim up to $3.62 per hour in tip credit. Oklahoma\u2019s law doesn\u2019t allow tip credit for workers who are subject to the FLSA.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Wisconsin<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Wisconsin recognizes <em>opportunity employees<\/em>. This is an employee under 20 years old, whom you haven\u2019t employed for more than 90 days. The minimum wage for opportunity employees is $5.90 per hour. But if this person is also a tipped worker, you can pay them $2.13 in cash wages and claim tip credit. Still, their total earnings must add up to $5.90.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>West Virginia<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The state minimum wage law applies only to state agencies and employers with 6 or more workers.<\/p>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track tipped worker hours<\/a><\/p>\n\n\n\n<h3 id=\"states-with-the-same-tipped-minimum-wage-as-the-federal-tipped-minimum-wage\" class=\"wp-block-heading translation-block\">States with the same tipped minimum wage as the federal tipped minimum wage<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In the following states, the state minimum tipped wage is the same as that required under the federal Fair Labor Standards Act ($2.13 per hour):<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State<\/strong><\/th><th><strong>Tipped minimum wage rate<\/strong><\/th><th><strong> Maximum tip credit&nbsp;<\/strong><\/th><th><strong>Total tipped minimum wage<\/strong><\/th><th><strong>Definition of a tipped employee<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Ala.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Ga.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Ind.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Kan.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Not specified<\/td><\/tr><tr><td><strong>Ky.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips<\/td><\/tr><tr><td><strong>La.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Miss.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Neb.<\/strong><\/td><td>$2.13<\/td><td>$12.87<\/td><td>$15.00<\/td><td>Not specified<\/td><\/tr><tr><td><strong>N.C.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $20 in tips (monthly)<\/td><\/tr><tr><td><strong>S.C.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Tenn.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Texas<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $20 in tips (monthly)<\/td><\/tr><tr><td><strong>Utah<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Va.<\/strong><\/td><td>$2.13<\/td><td>$10.64<\/td><td>$12.77<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Wyo.<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong><br><\/strong><strong>*Exceptions and additional information:<\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Alabama, Louisiana, Mississippi, South Carolina, and Tennessee<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">These states do not have state minimum wage laws. The FLSA guarantees the $2.13 federal minimum wage.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Georgia&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Georgia has a state minimum wage law, but it doesn\u2019t apply to tipped employees. The federal minimum wage applies.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Kansas, Texas, and Utah<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">These excluded states do not cover any employment that is subject to the federal FLSA.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>North Carolina<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tip credit is only permitted under strict conditions. The employer needs to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Notify all employees in advance how much they\u2019ll be paid in cash.<\/li>\n\n\n\n<li class=\"translation-block\">Tell all employees the amount that wages will be increased using the tip credit.<\/li>\n\n\n\n<li class=\"translation-block\">Obtain a signed certification of the tip amount received for each pay period (week or month), for each tipped employee.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>Wyoming<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Wyoming\u2019s minimum wage is $5.15 per hour. However, employers must pay employees covered by the FLSA at least the federal minimum wage, which is $7.25.<\/p>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track worker hours for easy payroll<\/a><\/p>\n\n\n\n<h3 id=\"tipped-minimum-wage-for-inhabited-us-territories\" class=\"wp-block-heading translation-block\">Tipped minimum wage for inhabited US territories<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Minimum wage <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/overtime\/whdfs17t\" target=\"_blank\" rel=\"noreferrer noopener\">regulations for 5 inhabited US territories<\/a> in the Caribbean and the US Pacific Islands region are presented in the table below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State<\/strong><\/th><th><strong>Tipped minimum wage rate<\/strong><\/th><th><strong>Maximum tip credit<\/strong><\/th><th><strong>Total tipped minimum wage<\/strong><\/th><th><strong>Definition of a tipped employee<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>American Samoa*<\/strong><\/td><td>$2.13<\/td><td>\/<\/td><td><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/state\/minimum-wage\/american-samoa\" target=\"_blank\" rel=\"noreferrer noopener\">Special minimum wage rates based on industry<\/a><\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Guam<\/strong><\/td><td>$9.25<\/td><td>\/<\/td><td>$9.25<\/td><td>No tip credit allowed<\/td><\/tr><tr><td><strong>Commonwealth of the Northern Mariana Islands<\/strong><\/td><td>$2.13<\/td><td>$5.12<\/td><td>$7.25<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>Puerto Rico<\/strong><\/td><td>$2.13<\/td><td>$8.37<\/td><td>$10.50<\/td><td>Earns more than $30 in tips (monthly)<\/td><\/tr><tr><td><strong>US Virgin Islands<\/strong><\/td><td>40% of the applicable minimum wage ($4.20)<\/td><td>$6.30<\/td><td>$10.50<\/td><td>Not specified<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong><br><\/strong><strong>*Additional information:<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>American Samoa<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">American Samoa sets industry-specific minimum wage rates. Additionally, hourly wages increase $0.40 every three years, on September 30. They\u2019ll continue to rise until all of the minimum wage rates equal the federal minimum wage. The next increase is scheduled for 2027.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">\n<div class=\"banner banner-dark clockify-gradient-bundle\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <h2 class=\"translation-block text-2xl !mb-4\">Run your business with CAKE.com<\/h2>\n        <p class=\"translation-block !text-sm\">Track employee hours (Clockify), organize projects (Plaky), and chat with employees (Pumble). Now 53% off!<\/p>\n\n        <div class=\"banner-buttons d-flex space-x-4 translation-block\">\n            <a class=\"rounded-md px-6 py-2 bg-white\" href=\"https:\/\/account.cake.com\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/cake.com\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-bottom \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/bundle@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/learn\/wp-content\/themes\/cake-learn\/src\/images\/clockify\/banners\/bundle.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"track-earnings-for-tipped-employees-with-clockify-by-cake-com\" class=\"wp-block-heading translation-block\">Track earnings for tipped employees \u2014 with Clockify by CAKE.com<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Keeping up with ever-changing labor laws is challenging and can lead to payroll mistakes. But a powerful time tracker like <a href=\"https:\/\/clockify.me\/\">Clockify<\/a> makes timekeeping and frequent rate changes as simple as it gets.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>#1: Keep accurate hours for each person<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Clockify easily handles time tracking for employees with frequently changing hours and shifts. Add people, assign them to projects, and choose your preferred timekeeping method:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/features\/kiosk\">Kiosk mode<\/a> to track daily employee attendance<\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/track-time-and-expenses\/adding-time-manually\">Manual mode<\/a> to track hours manually<\/li>\n\n\n\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/help\/track-time-and-expenses\/timesheet-view\">Timesheet view<\/a> to enter weekly attendance and hours worked<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How Timekeeping Works in Clockify | Guide\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/z01wrJagxMI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Clockify calculates the exact amount owed based on the <a href=\"https:\/\/clockify.me\/help\/reports\/hourly-rates\">employee rate<\/a>. This way, you know exactly what you owe at the end of the week.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>#2: Update employee rates to ensure labor law compliance<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Some US states frequently change their minimum wage rates. Clockify helps you implement rate changes with peace of mind. Clockify has 5 levels of rates that are easy to change at any time.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Changing Clockify rates <a href=\"https:\/\/clockify.me\/help\/reports\/historic-rates\">keeps your historical rates intact<\/a>, if you choose. Updated rates apply from the date you specify.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"896\" height=\"842\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Changing-employee-rates-in-Clockify.webp\" alt=\"Changing employee rates in Clockify\" class=\"wp-image-6790\" style=\"width:569px;height:auto\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Changing-employee-rates-in-Clockify.webp 896w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Changing-employee-rates-in-Clockify-300x282.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Changing-employee-rates-in-Clockify-768x722.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Changing-employee-rates-in-Clockify-13x12.webp 13w\" sizes=\"auto, (max-width: 896px) 100vw, 896px\" \/><figcaption class=\"wp-element-caption\">Changing employee rates in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>#3: Track daily or weekly tips with Clockify\u2019s Expenses<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Track tips for each person\u2019s shift with <a href=\"https:\/\/clockify.me\/help\/track-time-and-expenses\/expenses\">Clockify\u2019s Expenses<\/a>. At the end of their shift, your employees can enter their tips, or their share of the tip pool in the Expenses category.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">At the end of the week, go to <em>Reports &gt; Expense report<\/em>. Select your desired week and individuals to see their tracked tips.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"501\" src=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-1024x501.webp\" alt=\"Tracking tips in Clockify\" class=\"wp-image-6791\" srcset=\"https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-1024x501.webp 1024w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-300x147.webp 300w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-768x376.webp 768w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-1536x752.webp 1536w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify-18x9.webp 18w, https:\/\/clockify.me\/learn\/wp-content\/uploads\/2026\/08\/Tracking-tips-in-Clockify.webp 1800w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Tracking tips in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>#4: Export hours for easier payroll<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Collect payroll-ready data with ease. Clockify allows you to <a href=\"https:\/\/clockify.me\/help\/reports\/exporting-reports\">export time tracking data as a CSV file<\/a>. And, if your accountant uses a dedicated payroll software like <a href=\"https:\/\/clockify.me\/help\/integrations-and-add-ons\/clockify-xero\">Xero<\/a> or <a href=\"https:\/\/clockify.me\/adp-time-tracking\">ADP<\/a>, their programs will read Clockify data even more easily.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How to Manage Payroll with Clockify | Guide\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Gs8CuD9vY84?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Start tracking employee hours for FREE with our 7-day trial!<\/p>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Try Clockify by CAKE.com<\/a><\/p>\n\n\n\n<h2 id=\"faqs-about-tipped-wages-by-state\" class=\"wp-block-heading translation-block\">FAQs about tipped wages by state<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">To learn more about the subject, let\u2019s examine some of the frequently asked questions about tipped minimum wage by state.<\/p>\n\n\n\n<h3 id=\"do-waiters-get-paid-less-than-the-minimum-wage\" class=\"wp-block-heading translation-block\">Do waiters get paid less than the minimum wage?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The federal minimum wage is $7.25 an hour; paying employees less than this is illegal. However, if a waiter makes the minimum wage or more purely through tips, an employer can pay them at a lower rate. The total wage + tip earnings still have to add up to at least $7.25 per hour for each workweek.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"translation-block wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">To see how to simplify the process of calculating payroll for your employees, check out:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><a href=\"https:\/\/clockify.me\/calculating-payroll-hours-worked\">How to Calculate Work Hours: A Step-by-step Guide to Calculating Payroll and Hours Worked<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"why-do-servers-only-make-2-13-an-hour\" class=\"wp-block-heading translation-block\">Why do servers only make $2.13 an hour?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Servers only make <strong>$2.13 per hour<\/strong> in direct wages because the money they earn through tips often exceeds the federal minimum wage \u2014 <strong>$7.25 per hour<\/strong>. If a server earns less during any workweek, the employer must pay the difference.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum cash rate of $2.13 was established in 1996 to help small diners survive. It has remained permanently frozen since.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Today, some states require higher minimum cash wages. Other states are gradually eliminating this employer perk completely.<\/p>\n\n\n\n<h3 id=\"what-is-tip-credit-against-minimum-wage\" class=\"wp-block-heading translation-block\">What is tip credit against minimum wage?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In some US states, the \u201ctip credit against the minimum wage\u201d rule allows employers to rely on tips to pay people. Regardless of tips, federal law still requires a minimum cash payment of<strong> $2.13 per hour<\/strong>. Some state laws have higher rates, while others allow no tip credit at all.<\/p>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Calculate weekly employee wages<\/a><\/p>\n\n\n\n<h3 id=\"which-states-allow-tip-credit\" class=\"wp-block-heading translation-block\">Which states allow tip credit?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The Department of Labor (DOL) lists the following states as the states where tip credit is allowed:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Ala.*<\/td><td>Hawaii*<\/td><td>Md.<\/td><td>N.Y.<\/td><td>Tenn.*<\/td><\/tr><tr><td>Ariz.<\/td><td>Idaho<\/td><td>Mass.<\/td><td>N.C.*<\/td><td>Texas*<\/td><\/tr><tr><td>Ark.<\/td><td>Ill.<\/td><td>Mic.*<\/td><td>N.D.<\/td><td>Utah*<\/td><\/tr><tr><td>Colo.<\/td><td>Ind.<\/td><td>Miss.*<\/td><td>Ohio*<\/td><td>Vt.<\/td><\/tr><tr><td>Conn.*<\/td><td>Iowa<\/td><td>Mo.<\/td><td>Okla.*<\/td><td>Va.<\/td><\/tr><tr><td>Del.<\/td><td>Kan.*<\/td><td>Neb.<\/td><td>Pa.<\/td><td>W.Va.*<\/td><\/tr><tr><td>D.C.*<\/td><td>Ky.<\/td><td>N.H.<\/td><td>R.I.<\/td><td>Wis.*<\/td><\/tr><tr><td>Fla.*<\/td><td>La.*<\/td><td>N.J.*<\/td><td>S.C.*<\/td><td>Wyo.*<\/td><\/tr><tr><td>Ga.*<\/td><td>Maine<\/td><td>N.M.<\/td><td>S.D.<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><em>*Specific individual state rules apply.<\/em><\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The US territories that allow tip credit are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">American Samoa<\/li>\n\n\n\n<li class=\"translation-block\">Commonwealth of the Northern Mariana Islands<\/li>\n\n\n\n<li class=\"translation-block\">Puerto Rico<\/li>\n\n\n\n<li class=\"translation-block\">The US Virgin Islands<\/li>\n<\/ul>\n\n\n\n<h3 id=\"which-states-dont-allow-tip-credit\" class=\"wp-block-heading translation-block\">Which states don\u2019t allow tip credit?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Although the majority of states allow tip credit, these are the states where tip credit isn\u2019t allowed:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Alaska<\/li>\n\n\n\n<li class=\"translation-block\">California<\/li>\n\n\n\n<li class=\"translation-block\">Minnesota<\/li>\n\n\n\n<li class=\"translation-block\">Montana<\/li>\n\n\n\n<li class=\"translation-block\">Nevada<\/li>\n\n\n\n<li class=\"translation-block\">Oregon<\/li>\n\n\n\n<li class=\"translation-block\">Washington<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Also, Guam is a US territory that doesn\u2019t allow tip credit.<\/p>\n\n\n\n<h3 id=\"what-are-the-states-that-use-the-federal-tipped-minimum-wage\" class=\"wp-block-heading translation-block\">What are the states that use the federal tipped minimum wage?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Certain states follow the federal rate of <strong>$2.13 per hour <\/strong>for tipped minimum wage.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In other words, the tipped minimum wage payment in the following states is the same as the one required under the federal Fair Labor Standards Act ($2.13 per hour):<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Alabama<\/li>\n\n\n\n<li class=\"translation-block\">Georgia<\/li>\n\n\n\n<li class=\"translation-block\">Indiana<\/li>\n\n\n\n<li class=\"translation-block\">Kansas<\/li>\n\n\n\n<li class=\"translation-block\">Kentucky<\/li>\n\n\n\n<li class=\"translation-block\">Louisiana<\/li>\n\n\n\n<li class=\"translation-block\">Mississippi<\/li>\n\n\n\n<li class=\"translation-block\">Nebraska<\/li>\n\n\n\n<li class=\"translation-block\">North Carolina<\/li>\n\n\n\n<li class=\"translation-block\">South Carolina<\/li>\n\n\n\n<li class=\"translation-block\">Tennessee<\/li>\n\n\n\n<li class=\"translation-block\">Texas<\/li>\n\n\n\n<li class=\"translation-block\">Utah<\/li>\n\n\n\n<li class=\"translation-block\">Virginia<\/li>\n\n\n\n<li class=\"translation-block\">Wyoming<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The <strong>US territories<\/strong> that use the federal tipped minimum wage are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">American Samoa<\/li>\n\n\n\n<li class=\"translation-block\">Commonwealth of the Northern Mariana Islands<\/li>\n\n\n\n<li class=\"translation-block\">Puerto Rico<\/li>\n<\/ul>\n\n\n\n<h3 id=\"what-are-the-states-that-have-their-own-tipped-minimum-wages\" class=\"wp-block-heading translation-block\">What are the states that have their own tipped minimum wages?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Most states have their own tipped minimum wages. These states require employers to pay tipped employees a minimum cash wage higher than the $2.13 minimum cash wage required under the FLSA:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>Ariz.<\/td><td>D.C.<\/td><td>Iowa<\/td><td>Mo.<\/td><td>N.D.<\/td><td>S.D.<\/td><\/tr><tr><td>Ark.<\/td><td>Fla.<\/td><td>Maine<\/td><td>N.H.<\/td><td>Ohio<\/td><td>Vt.<\/td><\/tr><tr><td>Colo.<\/td><td>Hawaii<\/td><td>Md.<\/td><td>N.J.<\/td><td>Okla.<\/td><td>Wis.<\/td><\/tr><tr><td>Conn.<\/td><td>Idaho<\/td><td>Mass.<\/td><td>N.M.<\/td><td>Pa.<\/td><td>W.Va.<\/td><\/tr><tr><td>Del.<\/td><td>Ill.<\/td><td>Mich.<\/td><td>N.Y.<\/td><td>R.I.<\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"how-much-do-most-servers-make-a-shift\" class=\"wp-block-heading translation-block\">How much do most servers make a shift?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The latest <a href=\"https:\/\/data.bls.gov\/oesprofile\/?major_group=350000&amp;occupation=353031&amp;measure=01&amp;areas=INDUSTRY,STATE,MSA\" target=\"_blank\" rel=\"noreferrer noopener\">US Bureau of Labor Statistics<\/a> numbers report a mean hourly wage of $19.26 for servers in 2025.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">However, the server\u2019s earnings depend on several factors, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\"><strong>Location and popularity of the workplace<\/strong> \u2014 Servers in major US cities with plenty of visitors usually earn more.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Type of shift servers work<\/strong> \u2014 A busy weekend night often provides more tip opportunities.<\/li>\n\n\n\n<li class=\"translation-block\"><strong>Server\u2019s skill level<\/strong> \u2014 A more experienced server will likely earn more in tips than a beginner.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h3 id=\"what-is-the-lowest-tipped-minimum-wage\" class=\"wp-block-heading translation-block\">What is the lowest tipped minimum wage?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The lowest a tipped employee can be paid is $2.13 per hour. Nonetheless, tipped employees must receive the federal minimum of $7.25 when wages and tips combine.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">State wage laws overrule federal laws, so your state may have a much higher minimum wage and tipped minimum wage. You may also be required to pay a full minimum wage regardless of tips, depending on your state.<\/p>\n\n\n\n<h3 id=\"what-is-the-highest-tipped-minimum-wage\" class=\"wp-block-heading translation-block\">What is the highest tipped minimum wage?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The state with the highest tipped minimum wage in the US is Washington \u2014 $17.13 per hour. Other states with high hourly tipped minimum wages are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Arizona \u2014 $12.15<\/li>\n\n\n\n<li class=\"translation-block\">Colorado \u2014 $12.14<\/li>\n\n\n\n<li class=\"translation-block\">District of Columbia \u2014 $10.30<\/li>\n\n\n\n<li class=\"translation-block\">Florida \u2014 $10.98<\/li>\n\n\n\n<li class=\"translation-block\">Hawaii \u2014 $14.75<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Furthermore, the following states\/territories have eliminated tip credit:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Alaska<\/li>\n\n\n\n<li class=\"translation-block\">California<\/li>\n\n\n\n<li class=\"translation-block\">Guam<\/li>\n\n\n\n<li class=\"translation-block\">Minnesota<\/li>\n\n\n\n<li class=\"translation-block\">Montana<\/li>\n\n\n\n<li class=\"translation-block\">Nevada<\/li>\n\n\n\n<li class=\"translation-block\">Oregon&nbsp;<\/li>\n\n\n\n<li class=\"translation-block\">Washington<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">These states also have a higher minimum wage than $7.25 per hour (for FLSA covered businesses).<\/p>\n\n\n\n<h3 id=\"do-tips-get-taxed\" class=\"wp-block-heading translation-block\">Do tips get taxed?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Tips are considered income and are subject to <a href=\"https:\/\/www.irs.gov\/newsroom\/tip-income-is-taxable-and-must-be-reported\" target=\"_blank\" rel=\"noreferrer noopener\">federal income tax<\/a>. Every employee is responsible for reporting their tips to their employer.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The amount the employer withholds from paychecks is based on the worker\u2019s total wages plus tips. Because of this, employees must report all cash and non-cash tips.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The tips that must be reported include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Cash tips from customers<\/li>\n\n\n\n<li class=\"translation-block\">Charged tips (credit\/debit card charges) given to the employee by their employer<\/li>\n\n\n\n<li class=\"translation-block\">Tips received from a tip-sharing agreement<\/li>\n<\/ul>\n\n\n\n<h3 id=\"what-is-the-tipped-minimum-wage-in-ny\" class=\"wp-block-heading translation-block\">What is the tipped minimum wage in NY?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">According to the New York State DOL, the minimum wage rates depend on the region and worker classification.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>New York City, Long Island, and Westchester<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Service employees: $14.15 tipped minimum wage, $2.85 maximum tip credit.<\/li>\n\n\n\n<li class=\"translation-block\">Food and service workers:<strong> <\/strong>$11.35 tipped minimum wage, $5.65 maximum tip credit.<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\"><strong>The rest of New York State<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Service employees: $13.30 tipped minimum wage, $2.70 maximum tip credit.<\/li>\n\n\n\n<li class=\"translation-block\">Food and service workers: $10.70<strong> <\/strong>tipped minimum wage, $5.30 maximum tip credit.<\/li>\n<\/ul>\n\n\n\n<p class=\"custom-btn translation-block wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Set up custom employee rates<\/a><\/p>\n\n\n\n<h3 id=\"what-is-the-minimum-wage-for-waiters-and-waitresses-in-florida\" class=\"wp-block-heading translation-block\">What is the minimum wage for waiters and waitresses in Florida?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">As of September 30, 2025, the minimum wage in Florida sits at $14.00 an hour, according to the <a href=\"https:\/\/frla.org\/minimum-wage\/\" target=\"_blank\" rel=\"noreferrer noopener\">Florida Restaurant &amp; Lodging Association (FRLA)<\/a>. The required cash wage for tipped employees is $9.98.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">The minimum wage will increase to $16.00 an hour in 2027. The cash wages for tipped employees will rise to $12.98.<\/p>\n\n\n\n<h3 id=\"what-is-the-minimum-wage-for-waiters-and-waitresses-in-texas\" class=\"wp-block-heading translation-block\">What is the minimum wage for waiters and waitresses in Texas?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In Texas, the minimum wage for waiters and waitresses is $7.25 per hour.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">$2.13 per hour is the lowest cash wage an employer can pay \u2014 if the employee\u2019s weekly tips + cash wage add up to at least $7.25 per hour. If this isn\u2019t the case, the employer must pay the difference.<\/p>\n\n\n\n<h3 id=\"what-is-the-minimum-wage-for-waiters-and-waitresses-in-california\" class=\"wp-block-heading translation-block\">What is the minimum wage for waiters and waitresses in California?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">As of January 1, 2026, California\u2019s state minimum wage for waiters and waitresses is $16.90 per hour. The state of California doesn\u2019t allow tip credit.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">However, many cities and counties in California (like San Francisco, Los Angeles, and West Hollywood) have their own local minimum wages. Employers are legally required to pay whichever rate is highest.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Also, workers employed at \u201climited-service\u201d fast-food restaurants with 60+ locations have a <a href=\"https:\/\/leginfo.legislature.ca.gov\/faces\/billNavClient.xhtml?bill_id=202320240AB1228\" target=\"_blank\" rel=\"noreferrer noopener\">$20.00 hourly minimum wage<\/a>.<\/p>\n\n\n\n<h3 id=\"what-is-the-minimum-wage-for-waiters-and-waitresses-in-arizona\" class=\"wp-block-heading translation-block\">What is the minimum wage for waiters and waitresses in Arizona?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">In Arizona, the total minimum wage for waiters, waitresses, and other tipped employees in 2026 is <strong>$15.15 per hour<\/strong>.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Arizona standard minimum wage is <strong>$15.15<\/strong> per hour. The maximum tip credit amount is&nbsp; <strong>$3.00<\/strong> <strong>per hour<\/strong>. The minimum cash wage to pay regardless of tips is <strong>$12.15<\/strong> <strong>per hour<\/strong>.&nbsp;<\/p>\n\n\n\n<h3 id=\"what-is-the-minimum-wage-for-waiters-and-waitresses-in-colorado\" class=\"wp-block-heading translation-block\">What is the minimum wage for waiters and waitresses in Colorado?<\/h3>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">If a restaurant is located in a part of Colorado without a local wage law, the total minimum wage is <strong>$15.16<\/strong> per hour. The maximum tip credit is<strong> $3.02<\/strong> per hour, and the minimum amount to pay regardless of tips is <strong>$12.14<\/strong> per hour.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Let\u2019s take a look at the wages for specific cities in Colorado:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Location<\/strong><\/th><th><strong>Total minimum wage<\/strong><\/th><th><strong>Max tip credit<\/strong><\/th><th><strong>Minimum cash wage<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Denver (City &amp; County)<\/td><td>$19.29<\/td><td>$3.02<\/td><td>$16.27<\/td><\/tr><tr><td>City of Boulder<\/td><td>$16.82<\/td><td>$3.02<\/td><td>$13.80<\/td><\/tr><tr><td>Boulder County (Unincorporated)<\/td><td>$16.82<\/td><td>$3.02<\/td><td>$13.80<\/td><\/tr><tr><td>Edgewater<\/td><td>$18.17<\/td><td>$4.67<\/td><td>$13.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"conclusion-disclaimer\" class=\"wp-block-heading translation-block\">Conclusion\/Disclaimer<\/h2>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Rules regarding tipped wages in the US depend on where you\u2019re working. To be fully informed of all your rights as a tipped employee, be sure to check:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">Federal and state laws for tipped wages<\/li>\n\n\n\n<li class=\"translation-block\">State laws on tip credit<\/li>\n\n\n\n<li class=\"translation-block\">IRS taxation regulations for tips<\/li>\n<\/ul>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">For more detailed information, check out the links we\u2019ve provided, as most of them lead you to the official government websites with other relevant information.<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Please note that this guide was written in Q3 of 2026, so any changes in the labor laws introduced later may not be included in this guide.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">This guide offers a general overview of information and does not constitute legal advice. Before taking legal action, consult the appropriate institutions and\/or authorized representatives.&nbsp;<\/p>\n\n\n\n<p class=\"translation-block wp-block-paragraph\">Clockify isn\u2019t responsible for any losses or risks incurred should this guide be used without further guidance from legal or tax advisors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn about the latest tipped worker wage rules and regulations. Stay compliant with our 2026 tipped minimum wage by state guide.<\/p>\n","protected":false},"author":8,"featured_media":6783,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,5],"tags":[],"class_list":["post-60","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-business-regulations"],"acf":[],"_links":{"self":[{"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/posts\/60","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/comments?post=60"}],"version-history":[{"count":159,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/posts\/60\/revisions"}],"predecessor-version":[{"id":6826,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/posts\/60\/revisions\/6826"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/media\/6783"}],"wp:attachment":[{"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/media?parent=60"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/categories?post=60"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clockify.me\/learn\/wp-json\/wp\/v2\/tags?post=60"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}