No tip credit
Tipped staff earn the full state minimum wage from the employer. Tips go on top and never count toward the wage.
The master guide · 51 jurisdictions
Tip laws decide what you pay tipped staff, who can share a tip pool, what happens to service charges and how fast card tips have to land. Federal law sets the floor: $7.25 an hour, with up to $5.12 of it allowed to come from tips. Every state can go further, and 51 of 51 state pages are live in this guide so far.
01Map
Pick a state to open its full page: wages, tip pools, service charges, card tips and sources. Each color is a tip credit class, and every state links to its own page.
Colors show each state's tip credit class. Small states are labeled at the right; DC is the dot. Boundaries: U.S. Census Bureau.
Every state, A to Z
02The basics
Six questions decide most tip setups. Every state page answers all six, in the same order, with a source on every figure.
The cash wage you pay before tips, and how much of the minimum wage tips are allowed to cover. Some states say none of it.
Who can share, whether you can make a pool mandatory, and who is always out. Spoiler: managers, almost everywhere.
A mandatory charge is not a tip. States differ on who owns it and what you have to tell guests.
Whether the card processing fee can come out of a tip, and by when card tips have to reach staff.
Cities and counties that set their own minimum wage, and states that block them from doing it.
What to keep, for how long, and where workers file a tip or wage claim.
03Federal baseline
The Fair Labor Standards Act (FLSA) sets the floor in all 51 jurisdictions. A state can be stricter, never looser, and the rule that is better for the worker wins.
$2.13 cash + $5.12 from tips = $7.25
04Tip credit classes
Every state falls into one of four classes. The class tells you, at a glance, whether tips can count toward the wage and how low the cash wage can go.
Tipped staff earn the full state minimum wage from the employer. Tips go on top and never count toward the wage.
The state allows a tip credit, but sets a cash wage above the federal $2.13. Tips can cover only part of the gap.
The state allows the same $2.13 cash wage as federal law, even when its own minimum wage is higher.
Federal rates apply to most restaurants: $2.13 cash, up to $5.12 from tips, $7.25 in total.
States without a live page aren't classed here yet. They join their class when their page goes live.
05All states
Sort by any column. 7 of the 51 states allow no tip credit at all. Federal law sets the floor: $7.25 minimum wage, $2.13 cash wage, up to $5.12 in tip credit.
| State | Min wage | Tipped cash wage | Max tip credit | Tip credit class | Mandatory pools | Card-fee deduction | Card tip payout | Local rates |
|---|---|---|---|---|---|---|---|---|
| Alabama | $7.25 | $2.13 | $5.12 | Federal | Yes | Pro rata | Card tips are due by payday, even before the processor pays. Pools pay out by payday, or soon after if totals aren't ready. | Preempted |
| Alaska | $14.00 | $14.00 | None | No tip credit | Yes | Pro rata | Pooled tips pay out daily, unless the arrangement says they're held to the next payday. Holding them requires a daily written tip accounting. | None |
| Arizona | $15.15 | $12.15 | $3.00 | Above $2.13 | Yes | Federal rule | Card tips are due by the regular payday under federal law. Arizona counts tips in the week earned. | 2 places |
| Arkansas | $11.00 | $2.63 | $8.37 | Above $2.13 | Depends | Federal rule | Card tips are due by the regular payday under federal law. Arkansas wages must be paid in full, with no strings attached. | Preempted |
| California | $16.90 | $16.90 | None | No tip credit | Yes | No | Credit-card gratuities: no later than next regular payday following patron authorization of credit-card payment. | 32+ places |
| Colorado | $15.16 | $12.14 | $3.02 | Above $2.13 | Yes | No | Tips belong to the worker once the customer pays. Pay periods run a month at most, with payday within 10 days. | 4 places |
| Connecticut | $16.94 | $6.38 | $10.56 | Above $2.13 | Depends | Federal rule | Card tips are due by the regular payday under federal law. Connecticut pays weekly or biweekly. | None |
| Delaware | $15.00 | $2.23 | $12.77 | Above $2.13 | Depends | No | The employer can't keep tips. Federal rules put collected tips on the regular payday. Wages are due within 7 days of the period's end. | None |
| District of Columbia | $18.40 | $10.30 | $8.10 | Above $2.13 | Yes | Pro rata | Collected tips are due by regular payday. DC wages go out at least twice a month, within 10 working days of the period's end. | None |
| Florida | $15.00 | $11.98 | $3.02 | Above $2.13 | Yes | Federal rule | Collected tips are due by regular payday under federal law, with a narrow exception. No separate Florida tip deadline was found. | Preempted |
| Georgia | $7.25 | $2.13 | $5.12 | Federal | Yes | Pro rata | Federal rule: card tips are due by the regular payday. Pools are paid out by payday, or soon after if amounts aren't known yet. | Preempted |
| Hawaii | $16.00 | $14.75 | $1.25 | Above $2.13 | Depends | Federal rule | Card tips and pooled tips are due by the regular payday. Hawaii wages are due within 7 days after the pay period. | None |
| Idaho | $7.25 | $3.35 | $3.90 | Above $2.13 | Yes | Federal rule | Card tips are due by the regular payday under federal law, without waiting on the card company. Idaho pays at least monthly. | Preempted |
| Illinois | $15.00 | $9.00 | $6.00 | Above $2.13 | Yes | Pro rata | Tips owed must be paid within 13 days after the pay period they were earned in ends. Federal payday rules may require sooner. | 2 places |
| Indiana | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Federal rule | Federally covered card tips are due by the regular payday, with no waiting on the card company. State pay timing also applies. | Preempted |
| Iowa | $7.25 | $4.35 | $2.90 | Above $2.13 | Depends | Federal rule | Federally covered card tips are due by regular payday. Iowa paydays generally fall within 12 days of period end, excluding Sundays and holidays. | Preempted |
| Kansas | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Federal rule | Federally covered card tips are due by regular payday. Kansas pays at least monthly, with no more than a 15-day lag. | Preempted |
| Kentucky | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | No | State wages at least semimonthly, no more than 18 days behind. Federally covered card tips are due by regular payday. | None |
| Louisiana | $7.25 | $2.13 | $5.12 | Federal | Yes | Federal rule | FLSA-covered card tips are due by regular payday, with no waiting on the card company. Louisiana requires notice of pay rate, frequency and method. | Preempted |
| Maine | $15.10 | $7.55 | $7.55 | Above $2.13 | Yes | No | Card tips are due by the next regular payday. The employer can't wait to be paid by the card company. | 2 places |
| Maryland | $15.00 | $3.63 | $11.37 | Above $2.13 | Yes | Pro rata | Card tips are due by the regular payday under federal rules, without waiting on the card company. | 3 places |
| Massachusetts | $15.00 | $6.75 | $8.25 | Above $2.13 | Yes | No | Tips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline. | None |
| Michigan | $13.73 | $5.49 | $8.24 | Above $2.13 | No | No | Card tips are due by the regular payday under federal rules, without waiting for the card company to pay. | Preempted |
| Minnesota | $11.41 | $11.41 | None | No tip credit | Depends | No | Card and electronic tips are paid no later than the next scheduled pay period. | 2 places |
| Mississippi | $7.25 | $2.13 | $5.12 | Federal | Yes | Pro rata | Federal rule: card tips are due by the regular payday, without waiting for the card company. | Preempted |
| Missouri | $15.00 | $7.50 | $7.50 | Above $2.13 | Yes | Pro rata | Federally covered employers pay card tips by regular payday, with no waiting on the processor. No separate Missouri deadline found. | Preempted |
| Montana | $10.85 | $10.85 | None | No tip credit | Yes | Pro rata | Employer-collected pool tips must be fully distributed no later than regular payday for the collection workweek. | Preempted |
| Nebraska | $15.00 | $2.13 | $12.87 | $2.13 cash | Yes | Pro rata | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | None |
| Nevada | $12.00 | $12.00 | None | No tip credit | Yes | No | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | None |
| New Hampshire | $7.25 | $3.27 | $3.98 | Above $2.13 | No | Unsettled | Tips are state wages subject to designated weekly or biweekly paydays; federally covered charged tips cannot wait for card-company reimbursement. | None |
| New Jersey | $15.92 | $6.05 | $9.87 | Above $2.13 | Yes | No | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | None |
| New Mexico | $12.00 | $3.00 | $9.00 | Above $2.13 | Yes | Unsettled | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | 4 places |
| New York | $16.00 | $10.70 | $5.30 | Above $2.13 | Yes | Pro rata | Card tips are due by the next regular payday. Employers can't wait for the card company to pay them first. | None |
| North Carolina | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Pro rata | Card tips count when charged and are due by that pay period's payday. | Preempted |
| North Dakota | $7.25 | $4.86 | $2.39 | Above $2.13 | Depends | Unsettled | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | Preempted |
| Ohio | $11.00 | $5.50 | $5.50 | Above $2.13 | Yes | Pro rata | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located. | Preempted |
| Oklahoma | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Pro rata | Card tips are due by the regular payday, without waiting for the card company. No separate state rule was found. | Preempted |
| Oregon | $15.55 | $15.55 | None | No tip credit | Yes | Federal rule | Federally covered employers pay out pooled tips by the regular payday, or as soon as practical if the amount isn't known yet. | 3 places |
| Pennsylvania | $7.25 | $2.83 | $4.42 | Above $2.13 | Yes | No | Pay out pooled tips by the regular payday for the period. If the amount isn't known yet, pay as soon as practical after. | Preempted |
| Rhode Island | $16.00 | $3.89 | $12.11 | Above $2.13 | Yes | Pro rata | Card tips are due by the regular payday, even if the card company hasn't paid the employer yet. | Preempted |
| South Carolina | $7.25 | $2.13 | $5.12 | Federal | Yes | Pro rata | Card tips are due by regular payday, without waiting on the processor. Pool shares go out by payday, or soon after if totals aren't known. | Preempted |
| South Dakota | $11.85 | $5.925 | $5.925 | Above $2.13 | Yes | Federal rule | Federal rules: card and pooled tips are due by regular payday, with a narrow pool exception. Tip-credit shortfalls are made up each pay period. | None |
| Tennessee | $7.25 | $2.13 | $5.12 | Federal | Yes | Pro rata | Not on file | Preempted |
| Texas | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Depends | Card tips are due by payday, even before the processor pays. Pools pay out by payday, or soon after if totals aren't ready. | Preempted |
| Utah | $7.25 | $2.13 | $5.12 | $2.13 cash | Yes | Pro rata | Tips count in the pay period they're earned. Federal rules for card tips and pools paid by the regular payday also apply. | Preempted |
| Vermont | $14.42 | $7.21 | $7.21 | Above $2.13 | Yes | Pro rata | Card tips are due by the regular payday, without waiting for the card company. No separate state rule was found. | None |
| Virginia | $12.77 | $2.13 | $10.64 | $2.13 cash | Yes | Pro rata | Tips the employer owes are wages, due on regular paydays. Under federal rules, card tips can't wait on the card company. | None |
| Washington | $17.13 | $17.13 | None | No tip credit | Yes | Pro rata | Employer-held tips and staff service charges are due no later than wages for the same period. No waiting on card reimbursement. | 8 places |
| West Virginia | $8.75 | $2.62 | $6.13 | Above $2.13 | Yes | Federal rule | Card tips are due by the regular payday, without waiting on the processor. State payday and deduction rules also apply. | None |
| Wisconsin | $7.25 | $2.33 | $4.92 | Above $2.13 | Depends | Federal rule | Card tips are due by the regular payday. Banquet amounts for staff and listed service-charge tips are due by the end of the pay period. | Preempted |
| Wyoming | $7.25 | $2.13 | $5.12 | Federal | No | Federal rule | Federal rule: card tips are due by the regular payday, without waiting on the card company. State final-pay rules also apply. | None |
Each value links through its state page to the statute or agency page behind it. General information, not legal advice.
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
06Local rates
10 states have cities or counties with their own minimum wage. A restaurant inside one pays the local rate, not the state rate. 25 block local rates entirely.
07Law changes
Next up: Arizona on . Each line links to the state page, where the change is cited to its official source.
08Every state
All 51 jurisdictions by region. Each chip shows the state's tip credit class.
51 of 51 state pages.
09Methodology
Every figure comes from an official source, a statute, a regulation or a government agency page, linked on the state's page. Ferry re-checks each state on a schedule and logs every change.
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
Researched by Ferry's tip operations research team. Last reviewed .
10Sources
The federal figures on this page link to this official source. State sources live on each state's page.
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”