Connecticut tip laws (2026)
Connecticut's minimum wage is $16.94 an hour, and the tipped cash wage is fixed at $6.38 for servers and $8.23 for bartenders. Tips have to cover the rest, and the employer needs proof they did. The minimum rises to $17.48 on January 1, 2027.
Connecticut at a glance
Tip credit allowedConnecticut: $16.94 an hour minimum wage. Tipped staff can be paid $6.38 cash, with up to $10.56 counted from tips.
| State minimum wage | $16.94/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $6.38 | Plus up to $10.56 in tips = $16.94.[2] |
| Max tip credit | $10.56 | Counted from tips.[3] |
| Tip pooling | Allowed | Mandatory pools: it depends.[4][2] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee, under federal rules.[4] |
| Card tip payout | Card tips are due by the regular payday under federal law. | Connecticut pays weekly or biweekly.[4][5][2] |
| Local minimum wages | None | None on file. |
Rates verified against the Connecticut Department of Labor, Wage and Workplace Standards Division 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 Connecticut?
In Connecticut you can take a tip credit of up to $10.56 an hour and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $6.38 cash and count up to $10.56 in tips. Tips must cover the gap.[1][2][3] |
| 02 | Make staff join a tip pool? | Depends | Federal permission is subject to state service-duty and proof rules. Broader state pool rules are unsettled.[4][2] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: the state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| 04 | Include cooks and dishwashers? | Depends | The state credit covers qualifying service workers and their actual tips. Federal rules allow kitchen staff in no-credit pools; state treatment needs review.[2][4] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[4] |
| 06 | Let an owner keep any of the tips? | No | An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[4] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No fixed percentage cap found in reviewed restaurant wage rules and Chapter 558. Eligible recipients, actual gratuity receipt and applicable minimum wages still govern.[2] |
| 08 | Take card processing fees out of tips? | Pro rata (federal) | Federal rule: only 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.[4] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday under federal law. Connecticut pays weekly or biweekly.[4][5][2] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[5][2][4] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | A mandatory service charge is not a tip. Paid out, it counts as wages under federal rules, not toward Connecticut's tip credit.[2][4] |
| 12 | Pay tips on a payroll card? | Yes | Federal payroll-card protections apply alongside state wage-payment rules. Offer another way to get paid too.[5] |
03State vs federal
Connecticut vs federal law
Connecticut sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $16.94 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Connecticut | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[4] | Connecticut$16.94[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[4] | Connecticut$6.38[2][1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[4] | Connecticut$10.56[3] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4] | ConnecticutConnecticut looks at customary tips and service duties, not a monthly dollar amount. The federal more-than-$30 test applies separately.[2][3][4] | State rule |
| Managers in the poolState rule | FederalManagers/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.[4] | ConnecticutManagers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[4] | State rule |
| Kitchen in the poolState rule | FederalCooks 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.[4] | ConnecticutThe state credit covers qualifying service workers and their actual tips. Federal rules allow kitchen staff in no-credit pools; state treatment needs review.[2][4] | State rule |
| Card fees from tipsFederal applies | FederalOnly 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.[4] | ConnecticutFederal rule applies.[4][2][5] | Federal applies |
| Card tip payoutState rule | FederalCharged 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.[4] | ConnecticutCard tips are due by the regular payday under federal law. Connecticut pays weekly or biweekly.[4][5][2] | State rule |
| Mandatory service chargesState rule | FederalA 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.[4] | ConnecticutA mandatory service charge is not a tip. Paid out, it counts as wages under federal rules, not toward Connecticut's tip credit.[2][4] | State rule |
| Overtime for tipped staffState rule | FederalFor 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.[4] | ConnecticutTime and a half after 40 hours a week. A seventh straight day pays at least 1.5 times the minimum rate.[2][4][6] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Connecticut fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Connecticut
In Connecticut employers can pay tipped staff $6.38 an hour and count up to $10.56 in tips toward the $16.94 minimum. If tips fall short, the employer makes up the difference.[1][2]
One server, one slow 30-hour week in Connecticut
A busy week with $316.80 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- The credit needs real table or booth service, actual tips, a recorded credit and proof of receipt, like a signed or electronic attestation.[2][5][7]
- Who counts as tipped
- Connecticut looks at customary tips and service duties, not a monthly dollar amount. The federal more-than-$30 test applies separately.[2][3][4]
- Overtime
- Time and a half after 40 hours a week. A seventh straight day pays at least 1.5 times the minimum rate.[2][4][6]
- Side work and dual jobs
- Two hours of non-service work, or over 20% of the shift, whichever is less, kills the day's credit, unless that time is tracked separately.[2]
Other rates
| Rate | Hourly |
|---|---|
| Tier General restaurant/bar employeesCovered work; tipped service categories have distinct fixed employer cash shares. Since .[1] | $16.94 |
| Tipped cash wage Waitpersons and other eligible non-bartender hotel/restaurant service employeesActual eligible gratuities and substantial evidence required. Since .[2] | $6.38 |
| Tipped cash wage BartendersCustomarily and regularly receives gratuities; required evidence applies. Since .[2] | $8.23 |
| Industry RestaurantEligible tipped waitpersons. Total pay must reach the general minimum. Since .[2] | $6.38 |
| Industry BarEligible tipped bartenders. Total pay must reach the general minimum. Since .[2] | $8.23 |
| Youth or training Unemancipated minors under 18, first 90 daysFirst 90 days; statutory anti-displacement rule applies; later full applicable minimum. Rate set by formula: at least 85% of applicable minimum fair wage or 10.10 per hour, whichever greater.[5] | $14.40* |
* Worked out by Ferry from the formula, using the $16.94 state minimum wage. Not an official figure.
Scheduled increases
- Now, since $16.94
- $17.48General statewide minimum wage. 31-58(i), annual employment cost index adjustment[1]
05Local rates
City and county minimum wages in Connecticut
No city or county minimum wages above the $16.94 state rate are on file for Connecticut.
06Tip pool
Who can be in the tip pool in Connecticut
Connecticut allows tip pools. 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.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Bartender | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Busser | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Food runner | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Host | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Barback | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Expo | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Back of house | ||
| Cook | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Dishwasher | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Leadership | ||
| Shift lead | Depends | The state credit needs service duties and real tips. Federal pool rules apply separately.[2][4] |
| Manager or supervisor | Not allowed | Cannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[4] |
| Owner | Not allowed | Cannot receive employees’ pooled tips. Actual ownership and management duties determine the restriction.[4] |
- Managers and supervisors
- Managers and supervisors can't keep workers' tips or take pool shares. They keep only tips for service they alone provide.[4]
- Owners
- An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[4]
- Back of house
- The state credit covers qualifying service workers and their actual tips. Federal rules allow kitchen staff in no-credit pools; state treatment needs review.[2][4]
- Who sets the percentages
- Federal rules let an employer require an eligible pool with notice. Connecticut has no settled rule on who sets percentages.[4][2]
- Cap on what a pool can take
- No fixed percentage cap found in reviewed restaurant wage rules and Chapter 558. Eligible recipients, actual gratuity receipt and applicable minimum wages still govern.[2]
07Put it to work
Setting up a tip pool in Connecticut
Under Connecticut rules, 6 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.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. Cannot receive employees’ pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Connecticut'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.
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
08Service charges
Service charges vs tips in Connecticut
Connecticut law doesn't say who a mandatory service charge belongs to, but it does set rules for how the charge is shown to guests. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | A mandatory service charge is not a tip. Paid out, it counts as wages under federal rules, not toward Connecticut's tip credit.[2][4] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[4] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[9][10] |
| Guest notice | None needed | Include mandatory fees in displayed prices unless an exception applies. Disclose any separate mandatory gratuity and its calculation clearly before customers select their purchase.[8] |
- 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.
- Step 2What does Connecticut say?Federal ruleA mandatory service charge is not a tip. Paid out, it counts as wages under federal rules, not toward Connecticut's tip credit.[2][4]
- Step 3Check the cityNo city service charge rules on file for Connecticut.
- Menu and receipt notice
- Include mandatory fees in displayed prices unless an exception applies. Disclose any separate mandatory gratuity and its calculation clearly before customers select their purchase.[8]
- Large-party auto gratuities
- An automatic gratuity is a required charge, not a tip, so it can't count toward the credit. Since July 1, 2026, it needs upfront disclosure.[2][4][8]
Local service charge rules
No local service charge rules on file for Connecticut.
More on the difference: service charge vs tip.
09Card tips
Card tips in Connecticut: fees and payout timing
In Connecticut only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: card tips are due by the regular payday under federal law. Connecticut pays weekly or biweekly.
Federal law allows only the actual card fee on the tip. Connecticut's tip-proof and withholding rules also apply. No explicit state approval found.[4][2][5]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineConnecticut rule Card tips are due by the regular payday under federal law. Connecticut pays weekly or biweekly.[4][5][2]
- Last dayFinal pay Fired: by the next business day. Quit or laid off: by the next regular payday.[5]
Paydays: Weekly or biweekly on a set payday, usually within 8 days after the pay period ends.[5]
Paying tips on a payroll card
- Allowed?YesFederal payroll-card protections apply alongside state wage-payment rules.[5]
- Worker consent needed?YesNeeds voluntary written or electronic consent. It can't be a condition of the job.[5]
- Free way to get the money?State ruleAt least 3 free withdrawals per pay period, no more than weekly, one for the full net pay. Many card fees are banned.[5]
- Must you offer another option?YesBoth direct deposit and a paper check must be offered.[5]
- Holding cash tipsState ruleFederal payday rule applies. Connecticut requires proof of tips and credit records but sets no separate cash-tip deadline.[4][2]
- Tips shown on the pay stubDependsPayroll records itemize the tip credit. That's not the same as a full tip breakdown on every paystub.[2][5]
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
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in Connecticut
Keep each tipped worker's tips and hours on record, shift by shift. Connecticut: three years, usually kept at the workplace unless the state approves another spot.
Connecticut State
- Tip records Track hours, regular and overtime pay, deductions, the tip credit as its own line, and proof of tips. Log service and non-service time separately.[2]
- How long to keep them Three years, usually kept at the workplace unless the state approves another spot.[2]
- Tip credit notice Required. Give written pay rate, hours and payday at hire, plus the federal tip-credit notice. Tip amounts need proof.[5][2][4]
- Posters and forms DOL79 Restaurant and Hotel Restaurant Minimum Fair Wage Order, posted for employees; DOL75 Minimum Wage Administrative Regulations poster; Substantial evidence/attestation of gratuities claimed for credit.[2][7]
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.[4]
- 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 Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[4]
- 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.
Think your tips were handled wrong in Connecticut?
Workers in Connecticut can file a tip or wage claim with the Connecticut Department of Labor, Wage and Workplace Standards Division (860-263-6790). Filing is free, and this page can't settle a dispute; the state can.[1]
Retaliation: No firing, discipline or other punishment for wage claims or testimony. Remedies include reinstatement, back pay and fees.[5][13]
Penalties: Usually double unpaid wages plus costs and fees, less with a good-faith defense. A $300-per-violation civil penalty and criminal sanctions can also apply.[5]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedEmployers can't keep tips to cover business costs. Ordinary wage deductions follow Connecticut's separate authorization rules.[5][2][4]
- BreakageNot allowedEmployers can't keep tips to cover business costs. Ordinary wage deductions follow Connecticut's separate authorization rules.[5][2][4]
- Register shortagesNot allowedEmployers can't keep tips to cover business costs. Ordinary wage deductions follow Connecticut's separate authorization rules.[5][2][4]
- UniformsNot allowedEmployers can't keep tips to cover business costs. Ordinary wage deductions follow Connecticut's separate authorization rules.[5][2][4]
- Card processing feesDependsFederal proportional limit and state gratuity-proof/authorized-withholding restrictions apply.[4][2][5]
- A manager's shareNot allowedEmployers, managers and supervisors cannot receive employee tip-pool shares.[4]
11Law changes
What changed in Connecticut tip law, and what's coming
Next scheduled change: the Connecticut minimum wage goes to $17.48 on . Most recent change: Price-transparency law requires mandatory-fee-inclusive pricing, with a separate mandatory-gratuity exception requiring clear disclosure before selection ().
- ComingMinimum wage goes to $17.48 (General statewide minimum wage).[1]
- ChangedPrice-transparency law requires mandatory-fee-inclusive pricing, with a separate mandatory-gratuity exception requiring clear disclosure before selection.[8]
- ChangedGeneral minimum became $16.35 under annual index; employer tipped shares remained fixed by 31-60(d).[1]
Key statutes
- CGS 31-58 and 31-60: minimum wage and fixed tipped cash shares
- RCSA 31-62-E2/E2a/E3/E3a/E14: restaurant duties, credit and records
- CGS 31-71b/c/e/f/k: wage payment and payroll cards
- CGS 31-68/69/69a/69b: remedies and retaliation
- CGS 42-536: mandatory-charge price transparency
Not covered here? Ask the Connecticut Department of Labor, Wage and Workplace Standards Division at 860-263-6790 or on portal.ct.gov/dol/divisions/wage-and-workplace-standards.
12FAQ
Connecticut tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Connecticut tip law, each linked to its source.
What is Connecticut's tipped minimum wage?
What is Connecticut's minimum wage in 2027?
How much side work kills the tip credit?
Two hours of non-service work, or more than 20% of the shift, whichever is less, wipes out the day's credit. Tracking that time separately keeps the credit for service hours.[2]
Can the tip credit apply before opening or after closing?
No. Work while the restaurant is closed to customers doesn't count as service, so no credit for those hours.[2]
Do tip statements have to be on paper?
No. Written or electronic attestations work, including a point-of-sale system that verifies tips received.[2]
When is final pay due after a firing?
By the next business day. After a quit or a layoff, by the next regular payday.[5]
Can an employer require a payroll card?
No. Workers have to agree in writing or electronically, and the employer has to offer both direct deposit and a paper check.[5]
How many free payroll-card withdrawals do workers get?
At least three per pay period, no more than weekly. One of them has to cover the full net pay.[5]
13Compare
How Connecticut compares with nearby states
Connecticut borders Massachusetts, New York and Rhode Island. None of the neighbors with a page pays a higher minimum wage than Connecticut's $16.94. 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 Connecticut: Tip credit, cash wage above federal.
- Iowa tip laws$7.25 min wage $4.35 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Arkansas tip laws$11.00 min wage $2.63 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Wisconsin tip laws$7.25 min wage $2.33 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Hawaii tip laws$16.00 min wage $14.75 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Vermont tip laws$14.42 min wage $7.21 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
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 Connecticut setup.
14Sources
Sources for Connecticut tip laws
Every figure on this page links to one of these 13 sources: 10 for Connecticut and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Wage and Workplace Standardsportal.ct.gov · Official source · Checked Pinpoint: Minimum Wageportal.ct.gov/dol/divisions/wage-and-workplace-standards
What the source says
“$16.94 effective on January 1, 2026”
“$17.48 effective on January 1, 2027”
“Wage and Workplace Standards Division has jurisdiction over the laws and regulations governing employer-employee relationships covering approximately 1.6 million workers and over 100,000 employers in Connecticut.”
- 2Minimum Fair Wage Rates for Restaurant and Hotel Restaurant Occupations, DOL 79Connecticut Department of Labor · Official source · Page updated · Checked Pinpoint: Minimum Wage, p. 1; 31-62-E 3(c), p. 1; 31-62-E 2(c), p. 1portal.ct.gov/dol/-/media/dol/2022-new-design-system/divisions/wage-and-workplace-standards/dol-79_revised_restaurant_final2026.pdf?rev=daf6922eb6bf44f091e054b371433ad2&hash=7E1EC8EE622D37D74681392BB3AA9224
What the source says
“Waitpersons shall be paid $6.38 per hour plus gratuities on 1-1-26 and bartenders shall be paid $8.23 per hour plus gratuities on 1-1-26.”
“such as a daily, weekly, or bi-weekly attestation or statement in electronic or written format demonstrating that the service employee has received in gratuities not less than the amount claimed as credit for part of the minimum fair wage.”
““SERVICE EMPLOYEE” means any employee whose duties relate solely to the serving of food or beverage to patrons seated at tables or booths, and to the performance of duties incidental to such service, and who customarily receives gratuities.”
- 3Minimum Wages for Tipped Employees, July 1, 2026U.S. Department of Labor · Official source · Page updated · Checked www.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Hotel, restaurant $10.56 $6.38 Not specified Bartenders”
- 4Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: opening paragraph; Typical Problems, Overtime Problems, item 1; Tip pooling, paragraph 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.”
“When an employer takes a tip credit, overtime must be calculated based on the full minimum wage, which is currently $7.25 an hour, not the lower direct (or cash) wage payment.”
“The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”
- 5Chapter 558, Wages, General Statutes of ConnecticutConnecticut General Assembly · Official source · Page updated · Checked Pinpoint: 31-60(d)(3)(A); 31-58(i)(5); 31-71 ewww.cga.ct.gov/current/pub/chap_558.htm
What the source says
“six dollars and thirty-eight cents per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel restaurant, who customarily and regularly receive gratuities, and (B) eight dollars and twenty-three cents per hour for persons employed as bartenders”
“shall be not less than eighty-five per cent of the minimum fair wage for the first ninety days of such employment, or ten dollars and ten cents per hour, whichever is greater”
“No employer may withhold or divert any portion of an employee's wages unless (1) the employer is required or empowered to do so by state or federal law”
- 629 CFR 778.5 relation to other lawsElectronic Code of Federal Regulations · Official source · Page updated · Checked www.ecfr.gov/current/title-29/subtitle-B/chapter-V/subchapter-B/part-778/subpart-A/section-778.5
What the source says
“the regular rate of the employee, as the term is used in the Fair Labor Standards Act, cannot be lower than such applicable minimum”
- 7Minimum Wage Administrative Regulations Poster, DOL 75Connecticut Department of Labor · Official source · Page updated · Checked portal.ct.gov/dol/-/media/dol/2022-new-design-system/divisions/wage-and-workplace-standards/dol-75_adminposter_2026.pdf?rev=036df163a1b0453fb20bbbc000ab26c9
What the source says
“These Administrative Regulations must be posted and maintained wherever workers covered by this Act are employed.”
“each employer claiming credit for gratuities as part of the minimum fair wage paid to any employee shall provide substantial evidence”
- 8CGS 42-536 Price Transparencycga.ct.gov · Official source · Page updated · Checked Pinpoint: 42-536(b)(2)(B), mandatory gratuity exception; 42-536(b)(1)(A), prohibition with subsection 2 exceptionscga.ct.gov/2026/sup/chap_743kk.htm
What the source says
“if the existence of such mandatory gratuity and the manner in which such mandatory gratuity is calculated are clearly and conspicuously disclosed to the person before the person selects the good or service for purchase, leasing or receipt;”
“Advertise, display or otherwise offer such good or service to any person at a price that excludes any fee, charge or cost that such person is required to pay”
- 9Tip 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.”
- 10Revenue 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”
- 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,”
- 12Wage and Workplace Standards Complaint Forms Instructionsportal.ct.gov · Official source · Checked Pinpoint: Complaint assistance phone; Claim forms and instructionsportal.ct.gov/dol/divisions/wage-and-workplace-standards/wage-complaint
What the source says
“contact the Wage and Workplace Standards Division at (860) 263-6790”
“Statement of Claim for Wages to report or recover missed or unpaid wages.”
- 13FLSA Fact Sheet 77A retaliationU.S. Department of Labor · Official source · Checked Pinpoint: Coveragewww.dol.gov/agencies/whd/fact-sheets/77a-flsa-prohibiting-retaliation
What the source says
“the protection applies to all employees of an employer even in those instances in which the employee’s work and the employer are not covered by the FLSA.”
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
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
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
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
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
- 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.