District of Columbia tip laws (2026)
DC's minimum wage is $18.40 an hour as of July 1, 2026, and tipped workers can be paid $10.30 in cash with an $8.10 tip credit. A 2025 law scrapped the plan to end the tip credit in 2027. Tipped cash now climbs as a share of the minimum: 56% today, 60% from July 2028.
District of Columbia at a glance
Tip credit allowedDistrict of Columbia: $18.40 an hour minimum wage. Tipped staff can be paid $10.30 cash, with up to $8.10 counted from tips.
| State minimum wage | $18.40/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $10.30 | Plus up to $8.10 in tips = $18.40.[1] |
| Max tip credit | $8.10 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[3][4] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[3][4] |
| Card tip payout | 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.[5][4] |
| Local minimum wages | None | None on file. |
Rates verified against the District of Columbia Department of Employment Services, Office of Wage-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 District of Columbia?
In District of Columbia you can take a tip credit of up to $8.10 an hour, 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.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $10.30 cash and count up to $8.10 in tips. Tips must cover the gap.[2][1] |
| 02 | Make staff join a tip pool? | Yes | Federal rules allow required pools. DC adds tip retention, tipped-only sharing and a written policy.[3][4] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| 04 | Give managers or supervisors a share? | No | Managers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[4][6] |
| 05 | Let an owner keep any of the tips? | No | Owners with a real 20% stake who help run the place count as managers here. No employer can keep employees' tips.[4] |
| 06 | Pick your own split (hours, points or percentages)? | Depends | The employer writes a tip-sharing policy with the math and who's in. It goes in the hire notice and gets posted.[3][7][8] |
| 07 | Take card processing fees out of tips? | Pro rata | The hire notice states the card-fee percentage taken from card tips. Federal law caps it at the actual fee, and wages can't dip below minimum.[3][4] |
| 08 | Hold card tips until payday? | Deadline | 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.[5][4] |
| 09 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3][9][4] |
| 10 | Keep a mandatory service charge for the house? | Depends | Licensed restaurants and bars can charge a service fee up to 20%, or 25% in a negotiated contract. Disclose it; use it only as stated.[10][4] |
Not covered here? Ask the District of Columbia Department of Employment Services, Office of Wage-Hour at 202-671-1880 or on does.dc.gov/am/node/1412291.
03State vs federal
District of Columbia vs federal law
District of Columbia sets a stricter rule than federal law on 2 of the 9 rules below, starting with a $18.40 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | District of Columbia | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[4] | District of Columbia$18.40[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[4] | District of Columbia$10.30[1][2] | Stricter |
| Max tip creditHigher credit | Federal$5.12[4] | District of Columbia$8.10[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4] | District of ColumbiaDC law sets no monthly tip minimum. The federal more-than-$30-a-month test applies separately.[3][2][4][11] | 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] | District of ColumbiaManagers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[4][6] | State rule |
| Card fees from tipsSame as federal | 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] | District of ColumbiaTip's share of the fee only[3][4] | Same as federal |
| 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] | District of ColumbiaCollected tips are due by regular payday. DC wages go out at least twice a month, within 10 working days of the period's end.[5][4] | 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] | District of ColumbiaLicensed restaurants and bars can charge a service fee up to 20%, or 25% in a negotiated contract. Disclose it; use it only as stated.[10][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] | District of ColumbiaOvertime after 40 hours a week at 1.5 times the regular rate, with exceptions. Figure it on the full rate, then subtract the credit once.[3][4] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how District of Columbia fits among the four tip credit classes.
Not covered here? Ask the District of Columbia Department of Employment Services, Office of Wage-Hour at 202-671-1880 or on does.dc.gov/am/node/1412291.
04Wages
Minimum wage and the tip credit in District of Columbia
In District of Columbia employers can pay tipped staff $10.30 an hour and count up to $8.10 in tips toward the $18.40 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in District of Columbia
A busy week with $243.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
Other rates
| Rate | Hourly |
|---|---|
| Tier Covered restaurant/bar employeesDC coverage rules apply. Government and contract work have their own wage rules. Since .[1][3] | $18.40 |
| Youth or training Minors under 187 DCMR 902.4(g) permits the federal minimum instead of District general minimum; current Attorney General guidance confirms. No reduced tipped cash wage inferred.[6] | $7.25 |
| Youth or training Newly hired adult learners7 DCMR 902.4(e): age 18 or older, no more than 90 calendar days; agency current education page links these rules. No automatic tipped-credit calculation inferred.[11][14] | $7.25 |
Scheduled increases
No statewide increase with a published amount is on file as of .
Tip credit history
How DC's tipped wage got here, and where it's going
DC once had the tip credit set to end in 2027. A 2025 law swapped that for a slower climb, with tipped cash pegged to a rising share of the full minimum.[1][3]
- In effectNew tipping rules apply Law 26-55's tipping amendments apply as of this date.[3]
- In effectLaw 26-55 takes effect It drops the 2027 end of the tip credit and sets tipped cash as a percentage of the minimum.[3]
- Coming60% of the minimum Tipped cash steps up to 60% of the general minimum, with tips on top.[3]
- 2034Coming75% The last step listed in the current code.[3]
05Local rates
City and county minimum wages in District of Columbia
No city or county minimum wages above the $18.40 state rate are on file for District of Columbia.
06Tip pool
Who can be in the tip pool in District of Columbia
District of Columbia 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.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Bartender | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Busser | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Food runner | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Host | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Barback | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Expo | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Leadership | ||
| Shift lead | Depends | Has to be a role that customarily gets tips and meets federal duties rules. No manager, supervisor or owner shares.[3][4] |
| Manager or supervisor | Not allowed | No share of employee pool tips. Real duties and ownership decide who counts, not the job title.[4] |
| Owner | Not allowed | No share of employee pool tips. Real duties and ownership decide who counts, not the job title.[4] |
- Managers and supervisors
- Managers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[4][6]
- Owners
- Owners with a real 20% stake who help run the place count as managers here. No employer can keep employees' tips.[4]
- Who sets the percentages
- The employer writes a tip-sharing policy with the math and who's in. It goes in the hire notice and gets posted.[3][7][8]
- 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.[4][3]
- Pooling allowed
- Yes. Sharing is limited to workers who customarily get tips. The written policy goes in the hire notice and gets posted.[3]
Not covered here? Ask the District of Columbia Department of Employment Services, Office of Wage-Hour at 202-671-1880 or on does.dc.gov/am/node/1412291.
07Put it to work
Setting up a tip pool in District of Columbia
Under District of Columbia 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. Depends on the facts, left out of this example. | ||
| Kim | Not in the pool. Depends on the facts, left out of this example. | ||
| Rafa | Not in the pool. Depends on the facts, left out of this example. | ||
| Dana | Not in the pool. No share of employee pool tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet District of Columbia'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 District of Columbia
In District of Columbia whether a mandatory service charge counts as a tip depends on the facts. Licensed restaurants and bars can charge a service fee up to 20%, or 25% in a negotiated contract.
| 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 | Licensed restaurants and bars can charge a service fee up to 20%, or 25% in a negotiated contract. Disclose it; use it only as stated.[10][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[15][16] |
| Guest notice | None needed | Show the fee type and amount on every menu, any website and a sign near the entrance. Explain how much covers costs versus staff pay.[10] |
- 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 District of Columbia say?Depends on the factsLicensed restaurants and bars can charge a service fee up to 20%, or 25% in a negotiated contract. Disclose it; use it only as stated.[10][4]
- Step 3Check the cityNo city service charge rules on file for District of Columbia.
- Menu and receipt notice
- Show the fee type and amount on every menu, any website and a sign near the entrance. Explain how much covers costs versus staff pay.[10]
- Large-party auto gratuities
- An automatic charge falls under DC's service-fee cap, disclosure and use rules. Voluntary tips are a separate thing.[10][4]
Local service charge rules
No local service charge rules on file for District of Columbia.
More on the difference: service charge vs tip.
Service fees
A 20% cap and three places to say so
Licensed restaurants and bars can add a service fee of up to 20%, or 25% in a negotiated written contract such as a banquet. The fee has to be disclosed and spent only as described.[10][4]
- Shown on every menu
- Shown on the website, if there is one
- Shown on a sign that's easy to see on the way in
- Explains how the fee is used, including the share for operating costs and the share for staff pay
- Spent only on what was disclosed
09Card tips
Card tips in District of Columbia: fees and payout timing
In District of Columbia only the tip's share of the card processing fee can come out of a card tip. Payout deadline: 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.
The hire notice states the card-fee percentage taken from card tips. Federal law caps it at the actual fee, and wages can't dip below minimum.[3][4]
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.
- DeadlineDistrict of Columbia rule 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.[5][4]
- Last dayFinal pay Fired: by the next working day, with a 4-day exception for some cash-handling roles. Quit: next payday or 7 days, whichever comes first.[17]
Paydays: At least twice a month, within 10 working days of the period's end. Exempt executives can be paid monthly. Some contract exceptions apply.[5]
Paying tips on a payroll card
- Worker consent needed?YesFederal rules give workers the choice. A separate DC card-consent rule wasn't settled.[18]
- Must you offer another option?YesCFPB requires at least one alternative; this is the federal baseline.[18]
- Holding cash tipsState ruleWorkers keep their tips, apart from sharing among tipped coworkers. Collected tips are due by payday. A separate cash deadline isn't settled.[3][4]
- Tips shown on the pay stubYesPay stubs show a tips line and a cash-versus-card tip declaration. Since 2026 they also list other pay sources, like service-charge percentages.[8]
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”
Not covered here? Ask the District of Columbia Department of Employment Services, Office of Wage-Hour at 202-671-1880 or on does.dc.gov/am/node/1412291.
10Records
Records and notices in District of Columbia
Keep each tipped worker's tips and hours on record, shift by shift. District of Columbia: at least 3 years or prevailing federal standard identified by rule, whichever greater.
District of Columbia State
- Tip records Keep names, jobs, exact daily and weekly hours and pay. Non-hotel employers paying the tipped minimum have to use a third-party payroll company.[8]
- How long to keep them At least 3 years or prevailing federal standard identified by rule, whichever greater.[8]
- Tip credit notice Required. The hire or change notice covers tipped-wage rules, the keep-or-share policy and the card-fee percentage. The sharing policy also gets posted.[3][8]
- Posters and forms Current District Minimum Wage poster; Written hire/change wage notice and posted tip-sharing policy; Pay-period tip-declaration form distinguishing cash and card tips; Annual owner/manager tipped-wage training and offered employee training; certify by December 31.[1][3][8][5]
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.[19]
- 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.
Paperwork
The extra paperwork that comes with the tipped wage
Paying the $10.30 tipped wage brings duties beyond the rate itself. Most of them land on owners and managers.[5][8]
- 01
Third-party payroll
Employers other than hotels that pay the tipped minimum have to use a third-party payroll business.[8]
- 02
Tip declarations
Each pay period, a tip-declaration form splits cash tips from card tips.[8]
- 03
Yearly training
Owners, operators and managers take a yearly training on DC wage law, employees are offered one, and it's certified by December 31.[5]
- 04
Pay stub detail
Stubs show a tips line and, since January 1, 2026, other pay sources like service-charge percentages.[8]
Think your tips were handled wrong in District of Columbia?
Workers in District of Columbia can file a tip or wage claim with the District of Columbia Department of Employment Services, Office of Wage-Hour (202-671-1880). Filing is free, and this page can't settle a dispute; the state can.[1]
- Phone
- 202-671-1880[1]
- Website
- does.dc.gov/am/node/1412291
Retaliation: DC bars threats, firing or penalties for wage complaints, sharing information or joining proceedings. Courts can order relief and penalties.[20]
Penalties: Unpaid wages, penalties and extra treble damages, which can be cut for good faith. Late final pay adds 10% per working day, capped at treble.[21][17]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedNo employer business-cost diversion from employees’ tips; District wages cannot fall below statutory minimum through unauthorized deductions.[3][9][4]
- BreakageNot allowedNo employer business-cost diversion from employees’ tips; District wages cannot fall below statutory minimum through unauthorized deductions.[3][9][4]
- Register shortagesNot allowedNo employer business-cost diversion from employees’ tips; District wages cannot fall below statutory minimum through unauthorized deductions.[3][9][4]
- UniformsNot allowedNo employer business-cost diversion from employees’ tips; District wages cannot fall below statutory minimum through unauthorized deductions.[3][9][4]
- Card processing feesAllowedDisclosed actual proportional processor fee only; no required-wage shortfall.[3][4]
- A manager's shareNot allowedEmployers, managers and supervisors cannot receive employee tip-pool shares.[4]
11Law changes
What changed in District of Columbia tip law, and what's coming
No statewide increase with a published amount is on file for District of Columbia as of . Most recent change: General minimum rose to $18.40 and tipped cash to $10.30. The statute sets tipped cash at 56% of the minimum ().
- ChangedGeneral minimum rose to $18.40 and tipped cash to $10.30. The statute sets tipped cash at 56% of the minimum.[1]
- ChangedPay statements add nonbase/non-tip compensation sources, including service-charge percentages.[8]
- ChangedLaw 26-55 replaced the 2027 end of the tip credit with a percentage schedule, applying as of July 25, 2025.[3]
Key statutes
- D.C. Code 32-1003: minimum wage, tip credit, pool notice and current and future percentages
- D.C. Code 32-1008: records, pay statements, third-party payroll and hiring notice
- D.C. Code 32-1302 and 32-1303: paydays and final pay
- D.C. Code 32-1012 and 32-1311: remedies and retaliation
- D.C. Code 47-2908(b): restaurant service fee caps and disclosure
Not covered here? Ask the District of Columbia Department of Employment Services, Office of Wage-Hour at 202-671-1880 or on does.dc.gov/am/node/1412291.
12FAQ
District of Columbia tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about District of Columbia tip law, each linked to its source.
What is DC's tipped minimum wage?
Is DC's tip credit ending in 2027?
No. A 2025 law replaced the 2027 phaseout with a percentage schedule. Tipped cash is 56% of the minimum now and 60% from July 2028.[3]
Can kitchen staff join a tip pool in DC?
Not a tip-credit pool. DC limits sharing to workers who customarily get tips. A pool without the credit needs a separate look.[3]
Does a DC restaurant need a written tip-sharing policy?
Can card fees come out of tips in DC?
How big can a DC service fee be?
Up to 20% for licensed restaurants and bars, or 25% in a negotiated written contract, like a banquet. It has to be disclosed on menus, any website and entry signage.[10]
Do DC pay stubs have to show tips?
Yes. They show a tips line and a cash-versus-card tip declaration. Since January 2026 they also list other pay sources, like service-charge percentages.[8]
Do DC restaurants have to use a payroll company?
Yes, if they pay the tipped minimum, unless the employer is a hotel. A third-party payroll business has to prepare the payroll.[8]
13Compare
How District of Columbia compares with nearby states
District of Columbia borders Maryland, Virginia and Delaware. None of the neighbors with a page pays a higher minimum wage than District of Columbia's $18.40. 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 District of Columbia: Tip credit, cash wage above federal.
- New York tip laws$16.00 min wage $10.70 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Illinois tip laws$15.00 min wage $9.00 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Florida tip laws$15.00 min wage $11.98 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Missouri tip laws$15.00 min wage $7.50 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 District of Columbia setup.
14Sources
Sources for District of Columbia tip laws
Every figure on this page links to one of these 21 sources: 18 for District of Columbia and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 12026 Public Notice: District Minimum Wage IncreaseDepartment of Employment Services · Official source · Page updated 2026 · Checked Pinpoint: 2026 notice, employer posting requirementdoes.dc.gov/sites/default/files/dc/sites/does/publication/attachments/2026%20Minimum%20Wage%20Increase%20Notice_0.pdf
What the source says
“Beginning July 1, 2026, the minimum wage in the District of Columbia will increase from $17.95 per hour to $18.40 per hour for all workers, regardless of size of employer.”
“the base minimum wage for tipped employees will increase from $10.00 per hour to $10.30.”
“Every employer subject to the provisions of the Act must post the D.C. Minimum Wage Poster in or about the premises at which any employee covered is employed.”
- 2Minimum Wages for Tipped Employees, July 1, 2026U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: DCrowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“District of Columbia 3 $18.40 $8.10 $10.30 Not specified”
- 3§ 32–1003. Requirements.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1003(b-1); 32-1003(g)(3)code.dccouncil.gov/us/dc/council/code/sections/32-1003
What the source says
“an employee shall not be paid less than the District's minimum wage for each hour worked in the District when an employee performs at least 2 hours of work in the District, for the same employer, within one workweek. (c) No employer shall employ any”
“The employer has provided the employee with notice of the following, included in the notice furnished pursuant to § 32-1008(c)”
“All gratuities received by the employee have been retained by the employee, except that this provision shall not be construed to prohibit the sharing of gratuities among employees who customarily receive gratuities.”
- 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 13. Wages and Workplace Fraud.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1302; 32-1306.01(a)code.dccouncil.gov/us/dc/council/code/titles/32/chapters/13/index.full.html
What the source says
“An employer shall pay all wages earned to his or her employees on regular paydays designated in advance by the employer and at least twice during each calendar month; except, that all bona fide administrative, executive, and professional employees (those employees employed in a bona”
“Each business owner or operator who employs an employee who is paid in accordance with § 32-1003(f) shall attend either in-person or online, on a yearly basis, at least one training on the requirements of this chapter . (b) Each manager who is employed by”
“an interval of not more than 10 working days may elapse between the end of the pay period covered and the regular payday designated by the employer,”
- 6Wage and Hour LawsDistrict Office of Attorney General · Official source · Checked Pinpoint: Minimum Wage Exemptions, Minorsoag.dc.gov/worker-rights/wage-and-hour-laws
What the source says
“Individuals under the age of 18 years old may be paid the minimum wage established by the United States Government, rather than the District’s minimum wage.”
“managers and supervisors cannot participate in a tip pool earned by servers and bartenders.”
- 7Chapter 10. Minimum Wages.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1002(7 G)code.dccouncil.gov/us/dc/council/code/titles/32/chapters/10/index.full.html
What the source says
“The term "tip-sharing policy" means the written calculation of any tip outs or tip-pool structures that employees, delineated by job position or other factor, will provide to or receive from other employees. (8) The term “wage” means compensation due to an employee by reason of”
- 8§ 32–1008. Duties of employers; open records.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1008(b)(3); 32-1008(b)(6); 32-1008(a)(1)code.dccouncil.gov/us/dc/council/code/sections/32-1008
What the source says
“Deductions from and additions to wages, including a separate line for gratuities;”
“Employee's tip-declaration form for the pay period, delineating cash tips and credit-card tips; (6A) Beginning on January 1, 2026, a list of sources of the employee's compensation in addition to base wages and gratuities, including bonuses, commissions on sales, any amount calculated as a percentage”
“make, keep, and preserve for a period of not less than 3 years or the prevailing federal standard at the time the record is created, which shall be identified in rules issued pursuant to this chapter , whichever is greater, a record of: (A) The”
- 9District of Columbia 2026 Minimum Wage PosterDepartment of Employment Services · Official source · Page updated 2026 · Checked Pinpoint: Deductions, p. 2does.dc.gov/sites/default/files/dc/sites/does/publication/attachments/2026%20Minimum%20Wage%20Poster_0.pdf
What the source says
“No employer shall make any deductions, except those specifically authorized by law or court order, which would bring wages below those required by the Act.”
- 10§ 47–2908. Licensed restaurants, eating houses, barrooms, sample rooms, ice cream saloons, or soda fountains required to post price list.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 47-2908(b)(1), licensed businesses; percentage of sales; 47-2908(b)(1)(B), purpose and specific-use explanation also required; 47-2908(b)(1)(C)code.dccouncil.gov/us/dc/council/code/sections/47-2908
What the source says
“a service fee of not more than 20%;”
“including disclosing the proportion of the fee used for base operating costs and the proportion distributed as compensation above the applicable minimum wage;”
“The business uses any service fee collected from diners exclusively for the purposes disclosed. (2) A business licensed under this section may impose a service fee of not more than 25% when such fee is included as a term of a written contract negotiated between”
- 11Wage-Hour Rules, 7 DCMR chapter 9DOES · Official source · Checked Pinpoint: 7 DCMR 902.4(e); 7 DCMR 999.2 occupation definition; no monthly dollar numberdoes.dc.gov/sites/default/files/dc/sites/does/publication/attachments/DOES_wage_hour_rules.pdf
What the source says
“Newly hired persons 18 years of age or older may be paid the minimum wage established by the United States Government for a period not to exceed 90 calendar days.”
“Tipped Employees - are those who engage in occupations in which tips are customarily and regularly received from patrons.”
- 12Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3www.dol.gov/agencies/whd/flsa/tips
What the source says
“a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”
- 13Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphswww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
What the source says
“These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”
- 14Office of Wage-Hour Education and EnforcementDOES · Official source · Checked does.dc.gov/page/office-wage-hour-education-and-enforcement
What the source says
“The Wage-Hour Rules provide, among other things, sub-minimum wage rates for newly hired workers and minors.”
- 15Tip 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.”
- 16Revenue 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”
- 17§ 32–1303. Payment of wages upon discharge or resignation of employee and upon suspension of work; employer’s liability for failure to make such payment.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1303(1); 32-1303(2); 32-1303(4)code.dccouncil.gov/us/dc/council/code/sections/32-1303
What the source says
“Whenever an employer discharges an employee, the employer shall pay the employee’s wages earned not later than the working day following such discharge; provided, however, that in the instance of an employee who is responsible for monies belonging to the employer, the employer shall be”
“Whenever an employee (not having a written contract of employment for a period in excess of 30 days) quits or resigns, the employer shall pay the employee’s wages due upon the next regular payday or within 7 days from the date of quitting or resigning,”
“10 per centum of the unpaid wages for each working day during which such failure shall continue after the day upon which payment is hereunder required, or an amount equal to treble the unpaid wages, whichever is smaller. (5) A subcontractor, including any intermediate subcontractor,”
- 18What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: definition, paragraph 1; paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“A payroll card is a prepaid card arranged by an employer for the purpose of paying its employees’ wages or salary.”
“Your employer can’t require you to receive your wages on a payroll card.”
“Your employer has to offer you at least one alternative to a payroll card.”
- 19Fact 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,”
- 20§ 32–1311. Retaliation.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1311(a)code.dccouncil.gov/us/dc/council/code/sections/32-1311
What the source says
“It shall be unlawful for any employer to discharge, threaten, penalize, or in any other manner discriminate or retaliate against any employee or person because that employee or person has: (1) Made or is believed to have made a complaint to his or her employer,”
- 21§ 32–1012. Civil actions.Council of the District of Columbia, D.C. Law Library · Official source · Checked Pinpoint: 32-1012(b)(1); 32-1012(b)(2), good-faith reduction floor; all three conditions requiredcode.dccouncil.gov/us/dc/council/code/sections/32-1012
What the source says
“an additional amount as liquidated damages equal to treble the amount of unpaid wages. (2) The court may award an additional amount of liquidated damages less than treble the amount of unpaid wages, but not less than the amount of unpaid wages, only if the”
“but not less than the amount of unpaid wages,”
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.