Part of Ferry's 51-state tip laws guide

Alaska tip laws (2026)

Alaska has no tip credit. Every covered worker gets the full $14.00 an hour from the employer, and tips go on top. The rate rises to $15.00 on July 1, 2027, and cooks and dishwashers can share in tip pools.

Researched by Ferry's tip operations research teamReviewed How we research these pages
Rates as of Last reviewed

Alaska at a glance

No tip credit

Alaska: $14.00 an hour minimum wage and no tip credit, so tipped staff get the full $14.00 before tips.

Next change: $15.00 on . General statewide minimum wage[1]
Alaska tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$14.00/hrStatewide from .[1]
Tipped cash wage$14.00Full minimum wage. Tips go on top.[1]
Max tip creditNoneTips can't count toward wages.[1]
Tip poolingAllowedMandatory pools allowed.[1]
Card-fee deductionPro rata onlyOnly the tip's share of the fee.[1]
Card tip payoutPooled tips pay out daily, unless the arrangement says they're held to the next payday.Holding them requires a daily written tip accounting.[2]
Local minimum wagesNoneNone on file.[3]

Rates verified against the Alaska Department of Labor and Workforce Development, Wage and Hour on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)

02The yes/no sheet

Can you do this in Alaska?

In Alaska you can't take a tip credit, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Alaska
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?NoPay the full $14.00 an hour before tips.[1]
02Make staff join a tip pool?YesThe employer can direct a pool, but it needs written notice and can't be retroactive.[1]
03Include bartenders, bussers, runners and hosts?DependsBartenders and food runners: Not named in the rule, but in if the main duty is serving or helping serve customers. Managers and admin staff are out. Bussers and hosts: yes. Named in the rule. In, if the main duty is serving or helping serve customers.[1][2]
04Include cooks and dishwashers?YesCooks and dishwashers are named as service employees when their main duty serves or helps serve customers. Managers and admin staff are out.[1]
05Give managers or supervisors a share?NoEmployers, managers and supervisors can't keep workers' tips. Workers whose main job is managing or admin aren't service employees. Federal limits also apply.[2][1]
06Let an owner keep any of the tips?NoEmployers can't keep workers' tips or take pool shares. They can only handle tips to deliver or redistribute them as allowed.[2]
07Pick your own split (hours, points or percentages)?DependsThe employer can run the pool but must explain it in writing. Changes go out in writing a payday ahead. No retroactive pools.[1]
08Take card processing fees out of tips?Pro rataThe employer can take the processor's percentage fee on the tip amount only. Not more.[1][2]
09Hold card tips until payday?DeadlinePooled tips pay out daily, unless the arrangement says they're held to the next payday. Holding them requires a daily written tip accounting.[2]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[1]
11Keep a mandatory service charge for the house?YesYes, by default. Applies to mandatory charges, not tips customers leave by choice.[2]
12Pay tips on a payroll card?DependsA 2026 law, AS 23.10.044, allows payroll cards with free access rules. Federal rules on worker choice still apply. Offer another way to get paid too.[4][5]

03State vs federal

Alaska vs federal law

Alaska sets a stricter rule than federal law on 3 of the 10 rules below, starting with a $14.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Alaska tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)AlaskaComparison
Minimum wageStricterFederal$7.25[6]Alaska$14.00[1]Stricter
Tipped cash wageStricterFederal$2.13[6]Alaska$14.00 (full minimum wage)[1]Stricter
Max tip creditStricterFederal$5.12[6]AlaskaNone[1]Stricter
Who counts as tippedNot applicableFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[6]AlaskaNot applicable: Alaska has no tip credit.Not applicable
Managers in the poolState ruleFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[6]AlaskaEmployers, managers and supervisors can't keep workers' tips. Workers whose main job is managing or admin aren't service employees. Federal limits also apply.[2][1]State rule
Kitchen in the poolState ruleFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[6]AlaskaCooks and dishwashers are named as service employees when their main duty serves or helps serve customers. Managers and admin staff are out.[1]State rule
Card fees from tipsSame as federalFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[6]AlaskaTip's share of the fee only[1]Same as federal
Card tip payoutState ruleFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[6]AlaskaPooled tips pay out daily, unless the arrangement says they're held to the next payday. Holding them requires a daily written tip accounting.[2]State rule
Mandatory service chargesState ruleFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[6]AlaskaThe business's money, applies to mandatory charges, not tips customers leave by choice.[2]State rule
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[6]AlaskaTime and a half after 8 hours a day or 40 a week, no double counting. Employers under 4 employees are exempt. Tips stay out.[2][1][6]State rule

Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Alaska fits among the four tip credit classes.

04Wages

Minimum wage and the tip credit in Alaska

Alaska doesn't allow a tip credit. Tipped staff earn the full $14.00 an hour from the employer, and every tip lands on top.[1]

Worked example

One server, one 30-hour week in Alaska

Wage: 30 hours × $14.00$420.00
Tips for the week+ $600.00
Their week$1,020.00
Wage you payTips, all theirs

No tip credit means tips never reduce what you pay. A slow night doesn't change the wage line. Fictional worker and tips.

Tip credit conditions
Not applicable: Alaska has no tip credit.
Who counts as tipped
Not applicable: Alaska has no tip credit.
Overtime
Time and a half after 8 hours a day or 40 a week, no double counting. Employers under 4 employees are exempt. Tips stay out.[2][1][6]
Side work and dual jobs
Not applicable: Alaska has no tip credit.

Other rates

Other minimum wage rates in Alaska
RateHourly
Tier Covered restaurant/bar employeesGeneral state minimum; statutory coverage exemptions may apply. Since .[1]$14.00
Youth or training Authorized student-learner exemptionApproved cooperative vocational training program and department exemption required. Rate set by formula: not less than 50% of applicable state minimum wage; actual authorized rate set by department.[1]$7.00*

* Worked out by Ferry from the formula, using the $14.00 state minimum wage. Not an official figure.

Scheduled increases

  1. Now, since $14.00

Ballot Measure 1

Three raises in three years

Voters passed Ballot Measure 1 in 2024, which set three yearly steps every July. Tips can't be credited against any of them.[1][2]

  1. In effect$13.00 The phase-in starts.[1]
  2. In effect$14.00 Current rate. Tips stay on top of it.[1]
  3. Coming$15.00 Last fixed step.[1]
  4. ComingInflation indexing Yearly adjustments resume. No dollar amount is published yet.[1]

05Local rates

City and county minimum wages in Alaska

No city or county minimum wages above the $14.00 state rate are on file for Alaska.[3]

No state rule[3]

06Tip pool

Who can be in the tip pool in Alaska

Alaska allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.

Who can share in a tip pool in Alaska, by role
RoleCan share?Condition
Front of house
ServerAllowedIn, if the main duty is serving customers. Workers whose main job is managing or admin are out.[1]
BartenderDependsNot named in the rule, but in if the main duty is serving or helping serve customers. Managers and admin staff are out.[1]
BusserAllowedNamed in the rule. In, if the main duty is serving or helping serve customers.[1]
Food runnerDependsNot named in the rule, but in if the main duty is serving or helping serve customers. Managers and admin staff are out.[1]
HostAllowedNamed in the rule. In, if the main duty is serving or helping serve customers.[1]
BarbackDependsNot named in the rule, but in if the main duty is serving or helping serve customers. Managers and admin staff are out.[1]
ExpoDependsNot named in the rule, but in if the main duty is serving or helping serve customers. Managers and admin staff are out.[1]
Back of house
CookAllowedNamed in the rule. In, if the main duty is serving or helping serve customers.[1]
DishwasherAllowedNamed in the rule. In, if the main duty is serving or helping serve customers.[1]
Leadership
Shift leadDependsIn if the main duty is customer service. Out if the main duty is managing or admin.[1]
Manager or supervisorNot allowedNo employer or primary managerial/administrative shares; federal management restrictions also apply.[1][2]
OwnerNot allowedNo employer or primary managerial/administrative shares; federal management restrictions also apply.[1][2]
Managers and supervisors
Employers, managers and supervisors can't keep workers' tips. Workers whose main job is managing or admin aren't service employees. Federal limits also apply.[2][1]
Owners
Employers can't keep workers' tips or take pool shares. They can only handle tips to deliver or redistribute them as allowed.[2]
Back of house
Cooks and dishwashers are named as service employees when their main duty serves or helps serve customers. Managers and admin staff are out.[1]
Who sets the percentages
The employer can run the pool but must explain it in writing. Changes go out in writing a payday ahead. No retroactive pools.[1]
Cap on what a pool can take
No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[6][1]
Pooling allowed
Yes. Pools are for service employees only, with written notice in advance. Managers and admin staff are out.[1]

Back of house

Cooks and dishwashers are in

Alaska's tip-pool rule names hosts, order-takers, servers, bussers, dishwashers and cooks as service employees. A 2016 statement that left cooks out is outdated.[1]

  • Written notice of the pool to every service employee
  • Changes in writing by the payday before they start
  • No retroactive pools
  • No shares for workers whose main job is managing or admin

07Put it to work

Setting up a tip pool in Alaska

Under Alaska rules, 9 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
9 of 10 staff can share in Alaska
By %
By points
By hours
Servers 55%Bar 12%Support 15%Kitchen 18%
The same $1,200.00 pool split three ways, using roles that can share in Alaska
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$220.00$203.39$133.34
JordanServer, 6 h, 10 pts$220.00$203.39$133.33
PriyaServer, 6 h, 10 pts$220.00$203.39$133.33
SamBartender, 6 h, 8 pts$144.00$162.71$133.33
LuisBusser, 5 h, 5 pts$90.00$101.69$111.11
AvaFood runner, 5 h, 5 pts$90.00$101.69$111.11
TheoCook, 7 h, 4 pts$72.00$81.36$155.56
KimCook, 7 h, 4 pts$72.00$81.36$155.56
RafaDishwasher, 6 h, 3 pts$72.00$61.02$133.33
DanaManager or supervisor, 2 h (ran food)Not in the pool. No employer or primary managerial/administrative shares; federal management restrictions also apply.
Total$1,200.00$1,200.00$1,200.00

Fictional restaurant and staff. The guest-facing staff here are assumed to meet Alaska's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

Ferry Tip Manager: support pool split by hours

Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.

Who it's for Full-service restaurants that tip out bussers, runners and bar backs

Book a demoSee Tip Manager
Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Alaska

In Alaska a mandatory service charge belongs to the business by default, applies to mandatory charges, not tips customers leave by choice. A tip is the guest's choice and belongs to staff.

Tips compared with service charges in Alaska
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolThe business, by default. Applies to mandatory charges, not tips customers leave by choice.[2]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[6]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[8][9]
Guest noticeNone neededNo state rule. Federal law sets no menu or receipt notice rule.[7]
  1. Step 1Did the guest choose whether to pay it, and how much?
    YesIt's a tip. It belongs to staff.
    NoIt's a mandatory charge. Go to step 2.
  2. Step 2What does Alaska say?Business owns it by defaultThe business, by default. Applies to mandatory charges, not tips customers leave by choice.[2]
  3. Step 3Check the cityNo city service charge rules on file for Alaska.
Menu and receipt notice
No state rule. Federal law sets no menu or receipt notice rule.[7]
Large-party auto gratuities
A mandatory gratuity or fee added by the business is not a tip. Any share paid to staff counts as wages for overtime.[2]

Local service charge rules

No local service charge rules on file for Alaska.

More on the difference: service charge vs tip.

09Card tips

Card tips in Alaska: fees and payout timing

In Alaska only the tip's share of the card processing fee can come out of a card tip. Payout deadline: pooled tips pay out daily, unless the arrangement says they're held to the next payday. Holding them requires a daily written tip accounting.

Card processing fees
Pro rataOnly the tip's share.

The employer can take the processor's percentage fee on the tip amount only. Not more.[1][2]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineAlaska rule Pooled tips pay out daily, unless the arrangement says they're held to the next payday. Holding them requires a daily written tip accounting.[2]
  4. Last dayFinal pay Fired: within 3 working days. Quit: by the next regular payday at least 3 days after the employer gets notice.[2]

Paydays: Paid monthly if the annual contract says so. Otherwise the employer sets monthly or semimonthly pay periods, at the employee's choice.[1]

Paying tips on a payroll card

  • Allowed?DependsA 2026 law, AS 23.10.044, allows payroll cards with free access rules. Federal rules on worker choice still apply.[4]
  • Worker consent needed?DependsState law allows a card after the worker agrees, or if no bank deposit was set up. Federal choice rules still apply.[4][5]
  • Free way to get the money?State ruleAt least one cost-free withdrawal each week or pay period, whichever is longer, up to net wages; unlimited free telephone/electronic balance access; specified fees prohibited.[4]
  • Must you offer another option?YesFederal rule requires another way to get paid. Alaska also protects the worker's choice of bank.[5]
  • Holding cash tipsState ruleTips can be held until the next regular payday only with a daily written accounting to the employee.[1][2]
  • Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[10][1][2]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

Ferry Pay: each tip share, paid out digitally

Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.

Who it's for Operators who want to stop the nightly cash run

Book a demoSee Ferry PayAbout the Pay Card
Customer story: BJ's Restaurants
200+locations across 30 states run Tip Manager and Ferry Pay
66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Alaska

Keep each tipped worker's tips and hours on record, shift by shift. Alaska: state payroll records at least 3 years.

Alaska State

  • Tip records Keep identity, pay rates, amounts paid and daily and weekly hours. Holding tips until payday also requires a daily written tip record.[1][2]
  • How long to keep them State payroll records at least 3 years.[1]
  • Tip credit notice Not applicable: Alaska has no tip credit.
  • Posters and forms Alaska Wage and Hour Act summary/abstract posted conspicuously; Written tip-pool notice and advance written changes.[1]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[6]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[11]
  • Tip credit notice Not needed in Alaska: there's no tip credit.
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Alaska?

Workers in Alaska can file a tip or wage claim with the Alaska Department of Labor and Workforce Development, Wage and Hour (907-269-4900). Filing is free, and this page can't settle a dispute; the state can.[2]

Alaska Department of Labor and Workforce Development, Wage and Hour
Phone
907-269-4900[2]
Website
labor.alaska.gov/lss/whhome.htm
How to file a claim

Retaliation: Firing or punishing a worker for a wage complaint, case or testimony is illegal under AS 23.10.135(6).[1]

Penalties: Unpaid minimum wage or overtime, usually plus an equal amount in damages, court costs and attorney fees. Late final pay can add a penalty.[1]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedTips can't cover the employer's business costs. Separate wage-deduction rules allow narrow exceptions with a written admission.[1]
  • BreakageNot allowedTips can't cover the employer's business costs. Separate wage-deduction rules allow narrow exceptions with a written admission.[1]
  • Register shortagesNot allowedTips can't cover the employer's business costs. Separate wage-deduction rules allow narrow exceptions with a written admission.[1]
  • UniformsNot allowedTips can't cover the employer's business costs. Separate wage-deduction rules allow narrow exceptions with a written admission.[1]
  • Card processing feesAllowedOnly actual proportional processing fee on the charged tip.[1]
  • A manager's shareNot allowedNo employer/manager/supervisor share of employees’ tips.[1]

11Law changes

What changed in Alaska tip law, and what's coming

Next scheduled change: the Alaska minimum wage goes to $15.00 on . Most recent change: General statewide minimum wage increased to $14.00; tips remain additional and cannot be credited ().

  1. ComingMinimum wage goes to $15.00 (General statewide minimum wage).[1]
  2. ChangedGeneral statewide minimum wage increased to $14.00; tips remain additional and cannot be credited.[1]
  3. ChangedChapter 20 SLA 2026 adds AS 23.10.044 payroll cards, cost-free wage access, fee restrictions, disclosures and insurance protections.[12]
  4. Changed2024 Ballot Measure 1 minimum-wage phase-in began at $13.00; later $14.00 July 2026 and $15.00 July 2027 enacted.[1]

Bills and ballot measures

Nothing pending as of .

Key statutes

  • AS 23.10.065, minimum wage/tip credit prohibition
  • 8 AAC 15.907, employee tips
  • AS 23.05.140, pay periods/final pay
  • AS 23.10.040–.043, payment/deposit of wages
  • AS 23.10.100–.110, records/posting/remedies
  • 8 AAC 15.160, deductions and earnings statements
  • AS 23.10.044, wage payment by payroll card, Chapter 20 SLA 2026

12FAQ

Alaska tip law questions

Plain answers to the 8 questions restaurant owners and staff ask most about Alaska tip law, each linked to its source.

Can tips count toward Alaska's minimum wage?

No. Covered workers get the full $14.00 an hour from the employer. Tips are extra.[1]

When does Alaska's minimum wage go up next?

It becomes $15.00 an hour on July 1, 2027. Yearly inflation adjustments start again in 2028.[1][2]

Can cooks and dishwashers share in a tip pool?

Yes. Alaska's rule names cooks and dishwashers as service employees. Workers whose main job is managing or admin are left out.[1]

Does a tip pool need to be in writing?

Yes. Workers get written notice of the pool. Changes have to be in writing by the payday before they take effect, and nothing can be retroactive.[1]

Can the employer hold pooled tips until payday?

Only if the arrangement says so and the employer gives a daily written accounting of tips. Otherwise pooled tips go out daily.[2][1]

Can card fees come out of tips?

Only the processor's percentage, applied to the tip. Charging a server the fee on the whole bill is not allowed.[2][1]

Is a mandatory service charge a tip?

No. The business decides how to use it. Any share paid to staff counts as wages and goes into the overtime rate.[2]

When is a final paycheck due?

Within three working days after a firing. After a resignation, by the next regular payday at least three days after the employer gets notice.[2][1]

13Compare

How Alaska compares with nearby states

Alaska borders Washington, Oregon and Hawaii. Washington, Oregon and Hawaii pay a higher minimum wage than Alaska's $14.00. Running locations on both sides of a line? Each one follows its own state's rules.

Neighboring states

States with the same rules

Same tip credit class as Alaska: No tip credit.

Compare all states in one table

The law decides who's in. Ferry runs the split.

See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Alaska setup.

Book a demoTry the tip pooling calculator

14Sources

Sources for Alaska tip laws

Every figure on this page links to one of these 12 sources: 7 for Alaska and 5 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 1Employment Practices and Working Conditions, Wage and Hour Pamphlet 100Alaska Department of Labor and Workforce Development · Official source · Page updated · Checked Pinpoint: AS 23.10.065(a), PDF page 22; AS 23.10.065(a)(2), PDF page 22labor.alaska.gov/lss/forms/pam100.pdf
    What the source says

    “An employer may not apply tips or gratuities bestowed upon employees as a credit toward payment of the minimum hourly wage required by this section.”

    “the minimum wage shall be $14.00 per hour; (3) Effective July 1, 2027, the minimum wage shall be $15.00 per hour; and (4) Thereafter the minimum wage shall be adjusted annually for inflation.”

    “July 1, 2026, the minimum wage shall be $14.00 per hour; (3) Effective July 1, 2027, the minimum wage shall be $15.00 per hour; and (4) Thereafter the minimum wage shall be adjusted annually for inflation.”

  2. 2Restaurant Industry Notice, February 5, 2026Alaska Department of Labor and Workforce Development · Official source · Page updated · Checked Pinpoint: Minimum Wage and Overtime, physical p. 2; Tips, Fees, Gratuities and Service Charges, physical p. 4labor.alaska.gov/lss/forms/Restaurant-Industry.pdf
    What the source says

    “Barring any allowable exemptions, an employee who works over 8 hours in a workday and/or more than 40 straight-time hours in a workweek must be paid 1.5 times their regular rate of pay2 (this requirement of the law is referred to as “overtime”3).”

    “Alaska law prohibits employers, managers, and supervisors from retaining any portion of an employee’s tips.”

    “Employers should be aware that any service charges, gratuities, or other fees that are charged to a customer by the business, are not tips.”

  3. 3Alaska Statutes Title 29, Municipal GovernmentAlaska Legislature · Official source · Checked Pinpoint: AS 29.35.010www.akleg.gov/statutesPDF/Title-29.pdf
    What the source says

    “All municipalities have the following general powers, subject to other provisions of law:”

  4. 4Enrolled SB 79, payroll-card lawAlaska Legislature · Official source · Page updated · Checked Pinpoint: § 2, new AS 23.10.044(a); § 2, AS 23.10.044(c)(1)–(2), with (d) fee bans; § 2, AS 23.10.044(c)(2)www.akleg.gov/basis/Bill/Text/34?Hsid=SB0079Z
    What the source says

    “employer may credit employee wages to a payroll card account if an employee has”

    “at least one cost-free withdrawal each week or pay period,”

    “an unlimited cost-free mechanism to check the payroll card account”

  5. 5What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: paragraph following definition; Federal employee choice applies alongside new state default provisionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
    What the source says

    “Your employer has to offer you at least one alternative to a payroll card.”

    “Your employer can’t require you to receive your wages on a payroll card.”

  6. 6Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; Typical Problems, Overtime Problems, item 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
    What the source says

    “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).”

  7. 7Alaska Statutes Title 45, Trade and CommerceAlaska Legislature · Official source · Checked Pinpoint: AS 45.50.471(a)www.akleg.gov/statutesPDF/Title-45.pdf
    What the source says

    “Unfair methods of competition and unfair or deceptive acts or practices in the conduct of trade or commerce are declared to be unlawful.”

  8. 8Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
    What the source says

    “Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”

    “For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”

    “These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”

  9. 9Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
    What the source says

    “compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”

    “Rev. Rul. 2012-18”

  10. 10Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
    What the source says

    “However, the FLSA does not require an employer to provide employees pay stubs.”

  11. 11Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
    What the source says

    “Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”

    “Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”

    “Records on which wage computations are based should be retained for two years,”

  12. 12SB 79 current bill detailAlaska Legislature · Official source · Page updated · Checked Pinpoint: BASIS enactment and effective-date action; July 1, 2026www.akleg.gov/basis/Bill/Detail/34?Root=SB%2079
    What the source says

    “LAW W/O GOVERNOR SIGNATURE 6/18 CHAPTER 20 SLA 26”

15Methodology

How we research these pages

Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.

  1. 1

    Official sources only

    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.

  2. 2

    Every figure is linked

    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.

  3. 3

    Re-checked on a schedule

    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.

  4. 4

    Gaps are left out, not guessed

    If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.

What changed on this page

  1. First version of this page. Every figure was checked against the official sources listed on this page.

Researched by Ferry's tip operations research team. Last reviewed .

Changes to the law itself are listed in What changed and what's coming.

16Every state

Tip laws in every state

Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.

  • No tip creditNo tip credit
  • Above $2.13Tip credit, cash wage above federal
  • $2.13 cashTip credit, federal cash wage
  • FederalFederal rates apply

51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.