Idaho tip laws (2026)
Idaho's minimum wage is $7.25 an hour, the same as federal. Tipped workers get at least $3.35 in cash, and tips cover up to $3.90 of the rest. Cities and counties can't set a higher rate.
Idaho at a glance
Tip credit allowedIdaho: $7.25 an hour minimum wage. Tipped staff can be paid $3.35 cash, with up to $3.90 counted from tips.
| State minimum wage | $7.25/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $3.35 | Plus up to $3.90 in tips = $7.25.[1] |
| Max tip credit | $3.90 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[3] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee, under federal rules.[3] |
| Card tip payout | Card tips are due by the regular payday under federal law, without waiting on the card company. | Idaho pays at least monthly.[3] |
| Local minimum wages | None | State law blocks local rates.[4] |
Rates verified against the Idaho Department of Labor, Wage and Hour Section 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 Idaho?
In Idaho you can take a tip credit of up to $3.90 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 $3.35 cash and count up to $3.90 in tips. Tips must cover the gap.[2][1] |
| 02 | Make staff join a tip pool? | Yes | Federal rule. Idaho counts only tips each worker keeps after pooling toward the credit.[3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| 04 | Include cooks and dishwashers? | Depends | Federally, cooks and dishwashers can join a mandatory pool only if every worker gets the full minimum wage in cash and no credit is taken.[3] |
| 05 | Give managers or supervisors a share? | No | Federal law bars managers and supervisors from taking other workers' tips, including pool shares. Tips for service they alone provide are separate.[3] |
| 06 | Let an owner keep any of the tips? | No | Federal law bars employers from keeping workers' tips. Active owners who meet the federal test count as managers.[3] |
| 07 | Pick your own split (hours, points or percentages)? | Yes (federal) | Federal rule: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[3] |
| 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.[3] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday under federal law, without waiting on the card company. Idaho pays at least monthly.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3][1] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | No state rule. Federal rule applies: a 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.[3] |
| 12 | Pay tips on a payroll card? | Depends (federal) | Federal rule: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[5] |
03State vs federal
Idaho vs federal law
Idaho sets a stricter rule than federal law on 2 of the 10 rules below. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Idaho | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[3] | Idaho$7.25[1] | Same as federal |
| Tipped cash wageStricter | Federal$2.13[3] | Idaho$3.35[1][2] | Stricter |
| Max tip creditStricter | Federal$5.12[3] | Idaho$3.90[2] | Stricter |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | IdahoMore than $30 a month in tips.[6] | State rule |
| Managers in the poolFederal applies | 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.[3] | IdahoFederal law bars managers and supervisors from taking other workers' tips, including pool shares. Tips for service they alone provide are separate.[3] | Federal applies |
| Kitchen in the poolFederal applies | 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.[3] | IdahoFederally, cooks and dishwashers can join a mandatory pool only if every worker gets the full minimum wage in cash and no credit is taken.[3] | Federal applies |
| 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.[3] | IdahoFederal rule applies.[4] | 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.[3] | IdahoCard tips are due by the regular payday under federal law, without waiting on the card company. Idaho pays at least monthly.[3] | State rule |
| Mandatory service chargesFederal applies | 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.[3] | IdahoFederal rule applies.[4] | Federal applies |
| 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.[3] | IdahoIdaho follows the FLSA: time and a half after 40 hours. Federal tipped overtime is figured from the full minimum wage.[3] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Idaho fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Idaho
In Idaho employers can pay tipped staff $3.35 an hour and count up to $3.90 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in Idaho
A busy week with $117.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Only tips the worker actually keeps count. The employer makes up any shortfall and has to prove the tips were received.[6]
- Who counts as tipped
- More than $30 a month in tips.[6]
- Overtime
- Idaho follows the FLSA: time and a half after 40 hours. Federal tipped overtime is figured from the full minimum wage.[3]
- Side work and dual jobs
- No state rule. Federal rule applies: current 29 CFR 531.56(e) is the restored 1967 occupation-based dual-jobs rule. No tip credit for a separate non-tipped occupation; related duties within the tipped occupation need not themselves produce tips. The vacated 2021 federal 80/20 and 30-continuous-minute limits are not current regulatory limits. FAB 2026-1 withdraws historical opinion letters and confirms WHD enforcement guidance no longer sets specific time limits; it is agency guidance, not a new statute or regulation.[7][8][4]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training New hires under age 20First 90 consecutive calendar days; no displacement of existing workers.[1] | $4.25 |
Scheduled increases
No statewide increase with a published amount is on file as of .
06Tip pool
Who can be in the tip pool in Idaho
Idaho 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 | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Bartender | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Busser | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Food runner | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Host | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Barback | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Expo | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Back of house | ||
| Cook | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Dishwasher | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Leadership | ||
| Shift lead | Depends | Federal rules decide, based on duties and whether a tip credit is taken. Idaho has no role list.[3] |
| Manager or supervisor | Not allowed | Federal rule bars receiving other workers’ pooled tips.[3] |
| Owner | Not allowed | Federal rule bars receiving other workers’ pooled tips.[3] |
- Managers and supervisors
- Federal law bars managers and supervisors from taking other workers' tips, including pool shares. Tips for service they alone provide are separate.[3]
- Owners
- Federal law bars employers from keeping workers' tips. Active owners who meet the federal test count as managers.[3]
- Back of house
- Federally, cooks and dishwashers can join a mandatory pool only if every worker gets the full minimum wage in cash and no credit is taken.[3]
- Who sets the percentages
- No state rule. Federal rule applies: employer may set a valid mandatory pool; for a traditional pool it must notify tipped employees of required contribution amounts.[3][4]
- 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.[3][4]
- Pooling allowed
- Yes. Idaho recognizes pooled tips. Federal eligibility limits apply to FLSA-covered employers.[3]
07Put it to work
Setting up a tip pool in Idaho
Under Idaho 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. Federal rule bars receiving other workers’ 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 Idaho'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 Idaho
Idaho has no service charge rule of its own. 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 | No state rule. Federal rule applies: a 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.[3][4] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[3] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[10][11] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[4] |
- 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 Idaho say?Federal ruleNo state rule. Federal rule applies: a 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.[3][4]
- Step 3Check the cityNo city service charge rules on file for Idaho.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[4]
- Large-party auto gratuities
- No state rule. Federal rule applies: mandatory automatic gratuities are service charges for federal tax purposes, even when distributed to employees; a label does not make the payment voluntary.[10][11][4]
Local service charge rules
No local service charge rules on file for Idaho.
More on the difference: service charge vs tip.
09Card tips
Card tips in Idaho: fees and payout timing
In Idaho 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, without waiting on the card company. Idaho pays at least monthly.
Federal law allows only the actual card fee on the tip, and never below minimum wage. Idaho has no card-tip rule of its own.[3]
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.
- DeadlineIdaho rule Card tips are due by the regular payday under federal law, without waiting on the card company. Idaho pays at least monthly.[3]
- Last dayFinal pay Due by the next payday or 10 days after leaving, whichever is first, skipping weekends and holidays. A written request cuts it to 48 hours.[6]
Paydays: At least once a month on set paydays. The pay period can end no more than 15 days before payday.[6]
Paying tips on a payroll card
- Allowed?Depends (federal)No state rule. Federal rule applies: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[5][4]
- Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[5][4]
- Free way to get the money?Federal ruleNo state rule. Federal rule applies: no general federal free cash-withdrawal mandate identified; Regulation E requires fee disclosures. State law may require free access.[12][4]
- Must you offer another option?Yes (federal)No state rule. Federal rule applies: yes. At least one alternative must be offered under CFPB guidance.[5][4]
- Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[3][4]
- 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.[13][4]
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 Idaho
Keep each tipped worker's tips and hours on record, shift by shift. Idaho: at least three years from the worker's last day, under Idaho Code 45-610(1).
Idaho State
- Tip records Keep hours, pay rates, earnings, deductions and pay dates. Federal tipped-worker records apply on top.[6]
- How long to keep them At least three years from the worker's last day, under Idaho Code 45-610(1).[14]
- Tip credit notice Required. The federal notice covers cash wage, credit amount, the actual-tips limit and tip ownership. Idaho also requires notice of pay rate and payday.[3]
- Posters and forms Idaho minimum wage law summary.[4]
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.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[15]
- 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.[3]
- 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 Idaho?
Workers in Idaho can file a tip or wage claim with the Idaho Department of Labor, Wage and Hour Section (208-332-3579). Filing is free, and this page can't settle a dispute; the state can.[16]
Retaliation: Idaho Codes 44-1509 and 45-613 prohibit retaliation for wage complaints, proceedings and testimony.[14]
Penalties: Up to $500 per pay period for a pattern of late wages. Courts can award triple unpaid wages plus attorney fees.[14]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedFederal law bars employers from taking tips to cover business costs like this. Ordinary wage deductions are a separate question.[3]
- BreakageNot allowedFederal law bars employers from taking tips to cover business costs like this. Ordinary wage deductions are a separate question.[3]
- Register shortagesNot allowedFederal law bars employers from taking tips to cover business costs like this. Ordinary wage deductions are a separate question.[3]
- UniformsNot allowedFederal law bars employers from taking tips to cover business costs like this. Ordinary wage deductions are a separate question.[3]
- Card processing feesDependsIdaho wage deductions need legal authority or written permission for a lawful purpose. Federal card-fee limits still apply.[1]
- A manager's shareNot allowedFederal prohibition on employers/managers keeping employees’ tips.[3]
11Law changes
What changed in Idaho tip law, and what's coming
No statewide increase with a published amount is on file for Idaho as of .
No changes to Idaho tip or wage rules on file for the last 24 months.
Bills and ballot measures
Nothing pending as of .
Key statutes
- Idaho Code 44-1502 and 44-1503
- Idaho Code 45-606, 45-608, 45-609, 45-610, 45-613 and 45-615
12FAQ
Idaho tip law questions
Plain answers to the 7 questions restaurant owners and staff ask most about Idaho tip law, each linked to its source.
What is Idaho's tipped minimum wage?
Can an Idaho restaurant use a tip pool?
Can managers get a cut of the pool?
No. Federal law bars managers and supervisors from taking other workers' pooled tips. They can keep tips for service they alone provide.[3]
When are credit card tips due?
By the regular payday under federal law. The employer can't wait for the card company to pay first.[3]
When is a final paycheck due in Idaho?
By the next payday or 10 days after leaving, whichever comes first, not counting weekends and holidays. A written request shortens it to 48 hours.[1]
Can pay be docked when a customer walks out?
13Compare
How Idaho compares with nearby states
Idaho borders Montana, Nevada, Oregon, Utah, Washington and Wyoming. Montana, Nevada, Oregon and Washington pay a higher minimum wage than Idaho's $7.25. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Montana tip laws$10.85 min wage No tip credit No tip credit
- Nevada tip laws$12.00 min wage No tip credit No tip credit
- Oregon tip laws$15.55 min wage No tip credit No tip credit
- Utah tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Washington tip laws$17.13 min wage No tip credit No tip credit
- Wyoming tip laws$7.25 min wage Federal $2.13 cash wage Federal
States with the same rules
Same tip credit class as Idaho: Tip credit, cash wage above federal.
- Maryland tip laws$15.00 min wage $3.63 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Rhode Island tip laws$16.00 min wage $3.89 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- West Virginia tip laws$8.75 min wage $2.62 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Ohio tip laws$11.00 min wage $5.50 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 Idaho setup.
14Sources
Sources for Idaho tip laws
Every figure on this page links to one of these 16 sources: 8 for Idaho and 8 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Frequently Asked Questions on labor lawsIdaho Department of Labor · Official source · Page updated · Checked www.labor.idaho.gov/businesses/labor-laws/labor-laws-faq
What the source says
“The current Idaho state minimum wage is $7.25 per hour.”
“The minimum wage for a tipped employee is $3.35 per hour.”
“The minimum wage for new hires under the age of 20 years old is $4.25 per hour but only for the first 90 consecutive calendar days of employment.”
- 2Minimum Wages for Tipped Employees July 1 2026United States Department of Labor · Official source · Page updated · Checked Pinpoint: Idaho row within above-federal cash-wage categorywww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Idaho $7.25 $3.90 $3.35 More than $30”
- 3Fact Sheet 15 Tipped Employees Under the FLSAUnited States Department of Labor · Official source · Checked Pinpoint: Overtime Problems, first paragraph; Tip pooling, first paragraph; Traditional/Other Tip Poolingwww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“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.”
“As explained below, the rules governing tip pools depend on whether the employer pays a direct (or cash) wage equal to the full minimum wage to tipped employees or not.”
- 4Idaho Code Title 44 Chapter 15 Minimum Wage LawIdaho Legislature · Official source · Checked Pinpoint: Idaho Code 44-1502(4), PDF p. 1; 44-1507, PDF p. 3legislature.idaho.gov/wp-content/uploads/statutesrules/idstat/Title44/T44CH15.pdf
What the source says
“shall establish by ordinance or other action minimum wages higher than the minimum wages provided in this section.”
“The amount of the minimum wage shall conform to, and track with, the federal minimum wage.”
“posted in a conspicuous place, in or about the premises wherein any person subject to the act is employed, or in a place accessible to his employees.”
- 5What 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.”
- 6Guide to Idaho Labor LawsIdaho Department of Labor · Official source · Page updated · Checked Pinpoint: PDF p. 1, MINIMUM WAGE; PDF p. 1, MINIMUM WAGE, tipped-employees paragraphswww.labor.idaho.gov/wp-content/uploads/publications/wagehour.pdf
What the source says
“Unless specifically exempt, all employees subject to the provisions of the Idaho Minimum Wage Law must be paid at least $7.25 per hour effective July 24, 2009.”
“It is the employer’s burden to demonstrate the amount of tips actually received by the employee.”
“A “TIPPED EMPLOYEE” means any employee engaged in an occupation in which the employee customarily and regularly receives more than $30 a month in tips.”
- 7Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; Regulatory History, item 4; Tip regulation topics listwww.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.”
“On December 16, 2024, the Department announced a technical rule to restore the original dual jobs regulation at 29 CFR 531.56(e) .”
“29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”
- 8Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphs; p. 1, introductionwww.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.”
“withdrawn on January 14, 2025 (see WHD FOH Revision 785), no longer reflects the Division’s policy or interpretation of the Act.”
“This Field Assistance Bulletin (FAB) withdraws Wage and Hour Division (WHD or Division) Opinion Letters FLSA-895 (Aug. 8, 1979); WH-502 (Mar. 28, 1980); and FLSA-854, 1985 WL 1259240 (Dec. 20, 1985).”
- 9House Bill 813 2026 legislation and statusIdaho Legislature · Official source · Checked legislature.idaho.gov/sessioninfo/2026/legislation/H0813
- 10Tip 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.”
- 11Revenue 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”
- 12Are there fees to use a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked www.consumerfinance.gov/ask-cfpb/are-there-fees-to-use-a-payroll-card-en-403
What the source says
“Many state laws require that you’re able to access or withdraw your money for free, so check your state’s laws.”
- 13Questions 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.”
- 14Idaho Code Title 45 Chapter 6 Claims for WagesIdaho Legislature · Official source · Checked Pinpoint: Idaho Code 45-610(1); 45-613 PDF p. 5legislature.idaho.gov/wp-content/uploads/statutesrules/idstat/Title45/T45CH6.pdf
What the source says
“records must be maintained for a minimum period of three (3) years from the last date of the employee's service.”
“Such penalty shall not exceed five hundred dollars ($500) for such employer per pay period.”
“No employer shall discharge or in any other manner retaliate against any employee”
- 15Fact 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,”
- 16Wage and Hour: Idaho statute and enforcementIdaho Department of Labor · Official source · Checked Pinpoint: Opening paragraph; Page headingwww.labor.idaho.gov/laws-and-guidance/wage-and-hour
What the source says
“The Idaho Department of Labor’s Wage and Hour Section is responsible for enforcing the state of Idaho’s minimum wage and wage payment laws, and the licensing provisions of the state farm labor contractor licensing law.”
“Wage and Hour”
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.