Indiana tip laws (2026)
Indiana tipped workers get at least $2.13 an hour in cash, with a $5.12 tip credit to reach the $7.25 minimum wage. A 2026 law, IC 22-2-2-14.1, lets employers require tip pools, including cooks and dishwashers when everyone gets at least minimum wage. Employers, managers and supervisors can't take a cut.
Indiana at a glance
Tip credit allowedIndiana: $7.25 an hour minimum wage. Tipped staff can be paid $2.13 cash, with up to $5.12 counted from tips.
| State minimum wage | $7.25/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $2.13 | Plus up to $5.12 in tips = $7.25.[1] |
| Max tip credit | $5.12 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[2] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee, under federal rules.[3] |
| Card tip payout | Federally covered card tips are due by the regular payday, with no waiting on the card company. | State pay timing also applies.[3] |
| Local minimum wages | None | State law blocks local rates.[2] |
Rates verified against the Indiana Department of Labor, Wage and Hour 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 Indiana?
In Indiana you can take a tip credit of up to $5.12 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 $2.13 cash and count up to $5.12 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[2] |
| 03 | Include bartenders, bussers, runners and hosts? | Yes | All four can share.[2] |
| 04 | Include cooks and dishwashers? | Depends | Mandatory pools can include nontipped workers, like cooks and dishwashers, when the employer pays at least minimum wage.[2] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't get pool tips. The law defines them by management duties, directing two workers and hire or fire authority.[2] |
| 06 | Let an owner keep any of the tips? | No | Employers can't receive pool tips. Active owners with at least 20% equity count as managers under state law.[2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employer sets the required contribution and must tell workers. State law sets no cap.[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.[3] |
| 09 | Hold card tips until payday? | Deadline | Federally covered card tips are due by the regular payday, with no waiting on the card company. State pay timing also applies.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3][2] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | A mandatory service charge is not a tip under state law. Under federal law, charges paid to staff are wages and count toward overtime.[2] |
| 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.[4] |
03State vs federal
Indiana vs federal law
Indiana follows the federal baseline on the rules below: $7.25 minimum wage, $2.13 tipped cash wage and up to $5.12 in tip credit.
| Rule | Federal (FLSA) | Indiana | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[3] | Indiana$7.25[1] | Same as federal |
| Tipped cash wageSame as federal | Federal$2.13[3] | Indiana$2.13[1] | Same as federal |
| Max tip creditSame as federal | Federal$5.12[3] | Indiana$5.12[1] | Same as federal |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | IndianaState law says customarily and regularly tipped, with no dollar amount. Federal law uses more than $30 a month.[2] | 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.[3] | IndianaManagers and supervisors can't get pool tips. The law defines them by management duties, directing two workers and hire or fire authority.[2] | 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.[3] | IndianaMandatory pools can include nontipped workers, like cooks and dishwashers, when the employer pays at least minimum wage.[2] | 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.[3] | IndianaFederal rule applies.[2] | 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] | IndianaFederally covered card tips are due by the regular payday, with no waiting on the card company. State pay timing also applies.[3] | 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.[3] | IndianaA mandatory service charge is not a tip under state law. Under federal law, charges paid to staff are wages and count toward overtime.[2] | 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.[3] | IndianaTime and a half after 40 hours. For federally covered jobs, tipped overtime is figured on the full minimum wage.[2] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Indiana fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Indiana
In Indiana employers can pay tipped staff $2.13 an hour and count up to $5.12 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Indiana
A busy week with $153.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- The tip credit must be backed by tips employees report. Only tips a worker keeps after a lawful pool count.[2]
- Who counts as tipped
- State law says customarily and regularly tipped, with no dollar amount. Federal law uses more than $30 a month.[2]
- Overtime
- Time and a half after 40 hours. For federally covered jobs, tipped overtime is figured on the full minimum wage.[2]
- 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.[5][6][2]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training New employee under 20First 90 consecutive calendar days on the job. Anti-displacement protections in the statute apply.[7] | $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 Indiana
Indiana 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 | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Bartender | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Busser | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Food runner | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Host | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Barback | Allowed | Allowed in a tipped job. Actual duties count, and no manager status.[2] |
| Expo | Depends | Allowed in a required pool if the employer pays everyone at least minimum wage. Duties and manager authority decide.[2] |
| Back of house | ||
| Cook | Depends | Allowed in a required pool if the employer pays everyone at least minimum wage. Duties and manager authority decide.[2] |
| Dishwasher | Depends | Allowed in a required pool if the employer pays everyone at least minimum wage. Duties and manager authority decide.[2] |
| Leadership | ||
| Shift lead | Depends | Allowed in a required pool if the employer pays everyone at least minimum wage. Duties and manager authority decide.[2] |
| Manager or supervisor | Not allowed | Employers, managers and supervisors can't receive pool tips.[2] |
| Owner | Not allowed | Employers, managers and supervisors can't receive pool tips.[2] |
- Managers and supervisors
- Managers and supervisors can't get pool tips. The law defines them by management duties, directing two workers and hire or fire authority.[2]
- Owners
- Employers can't receive pool tips. Active owners with at least 20% equity count as managers under state law.[2]
- Back of house
- Mandatory pools can include nontipped workers, like cooks and dishwashers, when the employer pays at least minimum wage.[2]
- Who sets the percentages
- The employer sets the required contribution and must tell workers. State law sets no cap.[2]
- 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][2]
- Pooling allowed
- Yes.[2]
New in 2026
Indiana's 2026 tip pool law
IC 22-2-2-14.1 spells out when an Indiana employer can require a tip pool. The governor signed it on February 24, 2026, and it applies retroactively.[2][7][8]
- Nontipped workers can join when the employer pays everyone at least minimum wage.
- The employer tells workers any required contribution amount.
- The employer keeps none of the tips for any other purpose.
- No employer, manager or supervisor gets pool tips.
- Actual duties decide eligibility. Direct customer contact is not required.
07Put it to work
Setting up a tip pool in Indiana
Under Indiana 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. Employers, managers and supervisors can't receive pool tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. 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 Indiana
Indiana 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 | A mandatory service charge is not a tip under state law. Under federal law, charges paid to staff are wages and count toward overtime.[2] |
| 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[9][10] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[2] |
- 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 Indiana say?Federal ruleA mandatory service charge is not a tip under state law. Under federal law, charges paid to staff are wages and count toward overtime.[2]
- Step 3Check the cityNo city service charge rules on file for Indiana.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[2]
- Large-party auto gratuities
- Mandatory automatic charges are not tips under state law. A voluntary customer gratuity is treated separately.[2]
Local service charge rules
No local service charge rules on file for Indiana.
More on the difference: service charge vs tip.
09Card tips
Card tips in Indiana: fees and payout timing
In Indiana only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: federally covered card tips are due by the regular payday, with no waiting on the card company. State pay timing also applies.
Federal law caps card fee deductions at the actual processing percentage, without cutting into minimum wage. No separate state rule found.[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.
- DeadlineIndiana rule Federally covered card tips are due by the regular payday, with no waiting on the card company. State pay timing also applies.[3]
- Last dayFinal pay Due by the next regular payday. The claim route depends on how the job ended.[11]
Paydays: At least semimonthly, or biweekly if requested. Wages generally can't lag more than 10 business days, with some exceptions.[2]
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.[4][2]
- Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[4][2]
- 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][2]
- Must you offer another option?Yes (federal)No state rule. Federal rule applies: yes. At least one alternative must be offered under CFPB guidance.[4][2]
- 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][2]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[13][2]
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 Indiana
Keep each tipped worker's tips and hours on record, shift by shift. Federal law: FLSA: payroll records at least three years; underlying wage-computation records two years.
Indiana State
- Tip records Give workers hours, wages and deductions each pay period. Records stay open to state inspection. Reported tips must back the tip credit.[2]
- How long to keep them No state rule. Federal rule applies: FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[14][2]
- Tip credit notice Required. Federal notice covers cash wage, credit, actual tips and tip retention. State law also requires notice of any required pool contribution.[2]
- Posters and forms Indiana Minimum Wage Law poster.[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.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[14]
- 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 Indiana?
Workers in Indiana can file a tip or wage claim with the Indiana Department of Labor, Wage and Hour Division (317-232-2655). Filing is free, and this page can't settle a dispute; the state can.[15]
Retaliation: Retaliating against a worker for seeking state minimum wages is illegal. Federal complaint protections can apply even outside federal wage coverage.[2]
Penalties: Unpaid minimum wages plus an equal amount in liquidated damages, plus fees. Separate wage payment claims may allow double damages.[2]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedNot allowed for FLSA-covered employers. Tips can't pay business costs. Regular wage assignments follow separate rules.[3]
- BreakageNot allowedNot allowed for FLSA-covered employers. Tips can't pay business costs. Regular wage assignments follow separate rules.[3]
- Register shortagesNot allowedNot allowed for FLSA-covered employers. Tips can't pay business costs. Regular wage assignments follow separate rules.[3]
- UniformsNot allowedNot allowed for FLSA-covered employers. Tips can't pay business costs. Regular wage assignments follow separate rules.[3]
- Card processing feesDependsNeeds a signed, revocable wage assignment for a purpose the statute allows. Federal tip and minimum wage limits still apply.[3]
- A manager's shareNot allowedEmployers, managers and supervisors can't receive pooled tips.[2]
11Law changes
What changed in Indiana tip law, and what's coming
No statewide increase with a published amount is on file for Indiana as of . Most recent change: P.L. 15-2026 added IC 22-2-2-14.1, allowing conditional tip pools based on actual duties. Signed February 24, 2026, and it applies retroactively ().
- ChangedP.L. 15-2026 added IC 22-2-2-14.1, allowing conditional tip pools based on actual duties. Signed February 24, 2026, and it applies retroactively.[2]
Key statutes
- IC 22-2-2-4, 8, 9, 10.5, 11 and 14.1
- IC 22-2-5-1 and 2
- IC 22-2-6-2
Not covered here? Ask the Indiana Department of Labor, Wage and Hour Division at 317-232-2655 or on in.gov/dol/wage-and-hour/wage-and-hour-home.
12FAQ
Indiana tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Indiana tip law, each linked to its source.
What is Indiana's tipped minimum wage?
Can an Indiana employer require a tip pool?
Yes, under the conditions in IC 22-2-2-14.1. The pool can include nontipped workers when the employer pays at least minimum wage.[2]
Can cooks and dishwashers get pooled tips?
Yes, in a required pool when the employer pays at least minimum wage. The statute names them as examples of nontipped workers.[2]
Do pool members have to deal with customers?
No. Indiana looks at how a worker's actual duties support the service being tipped. Direct customer contact isn't required or decisive.[2]
Can managers or owners take from the pool?
No. Employers, managers and supervisors can't receive pool tips. Active owners with at least 20% equity count as managers.[2]
Is there a training wage?
Yes. Employers may pay $4.25 an hour to workers under 20 for their first 90 consecutive calendar days.[7]
When are credit card tips due?
Under federal law, by the regular payday. The restaurant can't hold them while waiting on the card company.[3]
When is a final paycheck due?
By the next regularly scheduled payday. The claim process can depend on how the job ended.[11]
13Compare
How Indiana compares with nearby states
Indiana borders Illinois, Kentucky, Michigan and Ohio. Illinois, Michigan and Ohio pay a higher minimum wage than Indiana's $7.25. 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 Indiana: Tip credit, federal cash wage.
- Kansas tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Nebraska tip laws$15.00 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- North Carolina tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Oklahoma tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Utah tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Virginia tip laws$12.77 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, 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 Indiana setup.
14Sources
Sources for Indiana tip laws
Every figure on this page links to one of these 15 sources: 6 for Indiana and 9 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Minimum Wages for Tipped Employees July 1 2026United States Department of Labor · Official source · Page updated · Checked Pinpoint: Indiana row and federal-equal cash wage groupingwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Indiana $7.25 $5.12 $2.13 More than $30”
- 2Indiana Code Title 22 2026 edition, archived 2026-10-24Indiana General Assembly via Internet Archive · Official source · Checked Pinpoint: IC 22-2-2-4(d), 14.1(b); IC 22-2-2-14.1(a)(4); IC 22-2-2-10.5(b); government contract exception in(c)web.archive.org/web/20261024212029if_/https://iga.in.gov/ic/2026/Title_22.html
What the source says
“An employer is responsible for supporting the amount of tip credit taken through reported tips by the employees.”
“"Tipped employee" means a person employed in an occupation in which the person customarily and regularly receives tips,”
“a minimum wage that exceeds the minimum wage required by section 4 of this chapter or by the federal minimum hourly wage prescribed by 29 U.S.C. 206(a)(1).”
- 3Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; Credit Cards; FS15 Employers May Not Keep Tipswww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”
- 4What 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.”
- 5Tip 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 ).”
- 6Field 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).”
- 7Indiana Minimum Wage Law official posterIndiana Department of Labor · Official source · Checked Pinpoint: Opening wage history; Training Wage; Posting statementwww.in.gov/dol/files/updated-pdfs-4-7-2026/Indiana2009MinimumWage.pdf
What the source says
“Both the federal and Indiana state minimum wage increased from $6.55 per hour to $7.25 per hour, effective July 24, 2009.”
“Indiana employers may pay $4.25 per hour to employees under 20 years of age for the first 90 consecutive calendar days after the employee is initially employed by the employer.”
“Indiana law requires this poster to be displayed in a conspicuous place in the area where employees are employed.”
- 82026 Bill WatchIndiana Governor · Official source · Checked www.in.gov/gov/newsroom/2026-bill-watch
- 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”
- 11I have a wage issue, where do I go?Indiana Department of Labor · Official source · Page updated · Checked faqs.in.gov/hc/en-us/articles/115005044367-I-have-a-wage-issue-where-do-I-go
What the source says
“Final wages must be paid on or before the next regularly scheduled payday on which the employee would have been normally paid had the employee remained employed.”
- 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.”
- 14Fact 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,”
- 15Indiana Wage and Hour HomeIndiana Department of Labor · Official source · Checked Pinpoint: Opening paragraph; Page headingwww.in.gov/dol/wage-and-hour/wage-and-hour-home
What the source says
“The Wage and Hour Division is charged with the administration and enforcement of the Indiana Wage and Hour laws.”
“Wage & Hour Home”
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.