Massachusetts tip laws (2026)
Massachusetts' minimum wage is $15.00 an hour, and tipped workers can be paid $6.75 in cash with an $8.25 tip credit. Cash plus tips has to reach $15.00 every shift, not just every week. Nothing comes out of tips, card fees included, and service charges go to staff unless they're clearly labeled as a house fee.
Massachusetts at a glance
Tip credit allowedMassachusetts: $15.00 an hour minimum wage. Tipped staff can be paid $6.75 cash, with up to $8.25 counted from tips.
| State minimum wage | $15.00/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $6.75 | Plus up to $8.25 in tips = $15.00.[2] |
| Max tip credit | $8.25 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[3] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[3] |
| Card tip payout | Tips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline.[3] | |
| Local minimum wages | None | None on file. |
Rates verified against the Massachusetts Attorney General, Fair Labor 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 Massachusetts?
In Massachusetts you can take a tip credit of up to $8.25 an hour, can require staff to join a tip pool and can't take card processing fees out of tips. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $6.75 cash and count up to $8.25 in tips. Tips must cover the gap.[2] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers: yes. Has to do wait staff or service bartender duties under the statute, with no managerial responsibility. Food runners and hosts: Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| 04 | Include cooks and dishwashers? | Depends | Paying full minimum doesn't open the pool to cooks or dishwashers. Quick-service counter staff who prep food can qualify on actual duties.[3] |
| 05 | Give managers or supervisors a share? | No | Anyone with managerial duties that service day isn't wait staff. Federal rules also bar managers and supervisors from pools, even on a non-manager shift.[3] |
| 06 | Let an owner keep any of the tips? | No | Owners and officers count as the employer, and employers can't take employee tips or service-charge money.[3] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employer can run a valid pool. Service charges are split by the service each worker gave. The law sets no fixed percentages.[3] |
| 08 | Take card processing fees out of tips? | No | The worker gets the full tip on the slip.[3] |
| 09 | Hold card tips until payday? | Deadline | Tips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3] |
| 11 | Keep a mandatory service charge for the house? | Depends | Only if you clearly tell guests it doesn't go to staff.[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.[4] |
03State vs federal
Massachusetts vs federal law
Massachusetts sets a stricter rule than federal law on 4 of the 10 rules below, starting with a $15.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Massachusetts | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[5] | Massachusetts$15.00[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[5] | Massachusetts$6.75[2] | Stricter |
| Max tip creditHigher credit | Federal$5.12[5] | Massachusetts$8.25[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[5] | MassachusettsRegularly gets more than $20 a month in tips.[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.[5] | MassachusettsAnyone with managerial duties that service day isn't wait staff. Federal rules also bar managers and supervisors from pools, even on a non-manager shift.[3] | 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.[5] | MassachusettsPaying full minimum doesn't open the pool to cooks or dishwashers. Quick-service counter staff who prep food can qualify on actual duties.[3] | State rule |
| Card fees from tipsStricter | 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.[5] | MassachusettsNot allowed[3] | Stricter |
| 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.[5] | MassachusettsTips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline.[3] | State rule |
| Mandatory service chargesStricter | 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.[5] | MassachusettsStaff's money unless you tell guests otherwise[3] | Stricter |
| 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.[5] | MassachusettsState overtime law exempts restaurant workers. Federal law still gives covered nonexempt staff overtime after 40 hours, figured from the full minimum.[6] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Massachusetts fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Massachusetts
In Massachusetts employers can pay tipped staff $6.75 an hour and count up to $8.25 in tips toward the $15.00 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in Massachusetts
A busy week with $247.50 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Tell workers in advance, let them keep tips outside a valid pool, and make cash plus tips reach $15.00 each shift. The employer covers shortfalls.[2]
- Who counts as tipped
- Regularly gets more than $20 a month in tips.[2]
- Overtime
- State overtime law exempts restaurant workers. Federal law still gives covered nonexempt staff overtime after 40 hours, figured from the full minimum.[6]
- 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][3]
Other rates
One statewide rate. No employer-size, industry or youth rates in Massachusetts.
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in Massachusetts
No city or county minimum wages above the $15.00 state rate are on file for Massachusetts.
06Tip pool
Who can be in the tip pool in Massachusetts
Massachusetts 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 | Has to do wait staff or service bartender duties under the statute, with no managerial responsibility.[3] |
| Bartender | Allowed | Has to do wait staff or service bartender duties under the statute, with no managerial responsibility.[3] |
| Busser | Allowed | Has to do wait staff or service bartender duties under the statute, with no managerial responsibility.[3] |
| Food runner | Depends | Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| Host | Depends | Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| Barback | Depends | Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| Expo | Depends | Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| Back of house | ||
| Cook | Depends | Real duties have to fit the statute, like quick-service counter work, with no manager duties that day. Ordinary kitchen cooks don't qualify.[3] |
| Dishwasher | Not allowed | Not an eligible service role under the statute, even when full minimum wage is paid.[3] |
| Leadership | ||
| Shift lead | Depends | Real duties have to fit the statute, like direct service or quick-service counter work, with no manager duties that day.[3] |
| Manager or supervisor | Not allowed | Employers and managers are barred from the pool.[3] |
| Owner | Not allowed | Employers and managers are barred from the pool.[3] |
- Managers and supervisors
- Anyone with managerial duties that service day isn't wait staff. Federal rules also bar managers and supervisors from pools, even on a non-manager shift.[3]
- Owners
- Owners and officers count as the employer, and employers can't take employee tips or service-charge money.[3]
- Back of house
- Paying full minimum doesn't open the pool to cooks or dishwashers. Quick-service counter staff who prep food can qualify on actual duties.[3]
- Who sets the percentages
- The employer can run a valid pool. Service charges are split by the service each worker gave. The law sets no fixed percentages.[3]
- 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.[5][3]
- Pooling allowed
- Yes.[3]
07Put it to work
Setting up a tip pool in Massachusetts
Under Massachusetts 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. Not an eligible service role under the statute, even when full minimum wage is paid. | ||
| Dana | Not in the pool. Employers and managers are barred from the pool. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Massachusetts'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 Massachusetts
In Massachusetts a mandatory service charge is presumed to belong to staff unless the business clearly tells guests otherwise.
| 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 | Staff, unless the business clearly tells guests otherwise.[3] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[5] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[10][11] |
| Guest notice | None needed | A house fee has to say plainly it isn't a tip or staff service charge. A 2025 advisory adds: make that obvious, and disclose its nature, purpose and amount.[9] |
- 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 Massachusetts say?Staff own it unless disclosedStaff, unless the business clearly tells guests otherwise.[3]
- Step 3Check the cityNo city service charge rules on file for Massachusetts.
- Menu and receipt notice
- A house fee has to say plainly it isn't a tip or staff service charge. A 2025 advisory adds: make that obvious, and disclose its nature, purpose and amount.[9]
- Large-party auto gratuities
- An automatic fee called, or reasonably taken as, a tip or service charge goes to eligible staff. A clearly disclosed house fee is the exception.[3]
Local service charge rules
No local service charge rules on file for Massachusetts.
More on the difference: service charge vs tip.
Service charges
Service charge or house fee? The label decides who gets it
A charge called a service charge, or one a guest would reasonably take as a tip, belongs to the staff. A house or admin fee can stay with the business only if it's clearly labeled as not a tip.[3][9]
Goes to staff
- Any fee called a service charge, tip or gratuity
- A charge a guest would reasonably expect to go to staff
- Split in proportion to the service each worker gave
- Paid out by the end of the same business day
- Never shared with employers or managers
Can stay with the house
- A house or administrative fee with a written description
- The description tells the guest it isn't a tip or service charge
- Under the 2025 advisory, the fee's nature, purpose and amount are clearly disclosed
09Card tips
Card tips in Massachusetts: fees and payout timing
In Massachusetts the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: tips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline.
No processing fees come out of tips or service charges. The law covers card tips and bans any deduction.[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.
- DeadlineMassachusetts rule Tips and service charges the employer collects go to staff by the end of the same business day, never later than the wage deadline.[3]
- Last dayFinal pay Fired: paid in full that day. Quit: next regular payday, or the following Saturday if there isn't one.[12]
Paydays: Hourly workers are paid weekly or every two weeks, within 6 or 7 days of the period's end. Salaried and other exceptions apply.[12]
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][3]
- Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[4][3]
- Free way to get the money?State ruleWorkers cannot be charged a fee to access wages. No separate payroll-card program-specific state rule identified.[13]
- Must you offer another option?Yes
- Holding cash tipsState ruleCash and card tips the employer collects follow the same-business-day rule. The employer keeps none of them.[3]
- 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.[14][12]
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 Massachusetts
Keep each tipped worker's tips and hours on record, shift by shift. Massachusetts: at least 3 years from when each record is made.
Massachusetts State
- Tip records Keep names, jobs, pay for each period, and daily and weekly hours. Running a pool can involve bookkeeping and tax records.[15]
- How long to keep them At least 3 years from when each record is made.[15]
- Tip credit notice Required. Tell workers in writing, in advance: the tip credit, how shift shortfalls are figured, and the tip and pool rules. Federal notice can apply too.[16]
- Posters and forms Massachusetts wage-and-hour law notice under 151 § 16.[17]
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.[5]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[18]
- 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.[5]
- 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 Massachusetts?
Workers in Massachusetts can file a tip or wage claim with the Massachusetts Attorney General, Fair Labor Division (617-727-3465). Filing is free, and this page can't settle a dispute; the state can.[13]
Retaliation: No penalty for asserting wage rights, complaining, helping an investigation or joining a case. Sanctions and civil remedies apply.[19]
Penalties: Tip-law restitution plus 12% yearly interest. Workers who win a private suit get triple lost wages, fees and costs. Civil and criminal sanctions also apply.[3]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedNothing comes out of employee tips or service charges, and employers get no share. Other wage setoffs don't change that.[3]
- BreakageNot allowedNothing comes out of employee tips or service charges, and employers get no share. Other wage setoffs don't change that.[3]
- Register shortagesNot allowedNothing comes out of employee tips or service charges, and employers get no share. Other wage setoffs don't change that.[3]
- UniformsNot allowedNothing comes out of employee tips or service charges, and employers get no share. Other wage setoffs don't change that.[3]
- Card processing feesNot allowedNo processing fee comes out of tips or service charges. The statute covers card tips and bans any deduction.[3]
- A manager's shareNot allowedEmployers and managers get no share of employee tips or service charges.[3]
11Law changes
What changed in Massachusetts tip law, and what's coming
No statewide increase with a published amount is on file for Massachusetts as of .
No changes to Massachusetts tip or wage rules on file for the last 24 months.
Key statutes
- MGL 149 § 152A
- MGL 151 § 1, 7, 15–16
- MGL 149 § 148,148A,150
- MGL 151 § 1A(14)
Not covered here? Ask the Massachusetts Attorney General, Fair Labor Division at 617-727-3465 or on mass.gov/orgs/the-attorney-generals-fair-labor-division.
12FAQ
Massachusetts tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Massachusetts tip law, each linked to its source.
What is Massachusetts' tipped minimum wage?
Can cooks share tips if everyone earns full minimum wage?
Not ordinary kitchen staff. Quick-service counter workers who prep or serve food as a team can qualify, based on what they actually do.[3]
Can managers get pooled tips?
Do service charges go to the staff?
Yes. Anything called, or reasonably taken as, a service charge goes entirely to eligible staff, split by the service each gave. A clearly labeled house fee is the exception.[3]
Can a restaurant take card fees out of tips?
No. The tip law covers card tips and bans any deduction from tips or service charges.[3]
When are tips and final wages due?
Do restaurant workers get overtime in Massachusetts?
Who counts as a tipped worker?
A service worker who customarily and regularly gets more than $20 a month in tips.[2]
13Compare
How Massachusetts compares with nearby states
Massachusetts borders Connecticut, New Hampshire, New York, Rhode Island and Vermont. Connecticut, New York and Rhode Island pay a higher minimum wage than Massachusetts's $15.00. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Connecticut tip laws$16.94 min wage $6.38 tipped cash wage Above $2.13
- New Hampshire tip laws$7.25 min wage $3.27 tipped cash wage Above $2.13
- New York tip laws$16.00 min wage $10.70 tipped cash wage Above $2.13
- Rhode Island tip laws$16.00 min wage $3.89 tipped cash wage Above $2.13
- Vermont tip laws$14.42 min wage $7.21 tipped cash wage Above $2.13
States with the same rules
Same tip credit class as Massachusetts: Tip credit, cash wage above federal.
- New Jersey tip laws$15.92 min wage $6.05 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Maine tip laws$15.10 min wage $7.55 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Pennsylvania tip laws$7.25 min wage $2.83 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Colorado tip laws$15.16 min wage $12.14 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Michigan tip laws$13.73 min wage $5.49 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Delaware tip laws$15.00 min wage $2.23 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
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 Massachusetts setup.
14Sources
Sources for Massachusetts tip laws
Every figure on this page links to one of these 19 sources: 11 for Massachusetts and 8 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1MGL 151 Section 1 Minimum WageMassachusetts General Court · Official source · Checked Pinpoint: 151 § 1malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section1
What the source says
“A wage of less than $15.00 per hour”
- 2MGL 151 Section 7 Service RateMassachusetts General Court · Official source · Checked Pinpoint: 151 § 7malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section7
What the source says
“the cash wage paid such employee which for purposes of such determination shall be not less than $6.75”
“an employer shall calculate the amount required by clause (2) at the completion of each shift worked by the employee”
“service people who customarily and regularly receive more than $20 a month in tips.”
- 3MGL 149 Section 152A Tips and Service ChargesMassachusetts General Court · Official source · Checked Pinpoint: 149 § 152A(c); only statutory eligible recipients; 149 § 152A(a),(c); actual duties, not titlemalegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section152A
What the source says
“Service charges and tips; tip pools; penalties”
“An employer may administer a valid tip pool”
“distribution to any person who is not a wait staff employee, service employee, or service bartender.”
- 4What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: definition, paragraph 1; paragraph following definition; Federal Regulation Ewww.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.”
- 5Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2www.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).”
- 6MGL 151 Section 1A Overtime ExemptionsMassachusetts General Court · Official source · Checked Pinpoint: 151 § 1A(14); federal independent coveragemalegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section1A
What the source says
“(14) in a restaurant.”
- 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).”
- 9Tips Advisory 3/2004 Revised 9/2025Massachusetts Attorney General · Official source · Page updated · Checked www.mass.gov/doc/tips-advisory/download
What the source says
“the employer must clearly and conspicuously describe the nature, purpose, and amount of the fee”
- 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”
- 12MGL 149 Section 148 Payment of WagesMassachusetts General Court · Official source · Checked Pinpoint: 149 § 148; 149 § 148 requires general payslipmalegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148
What the source says
“shall pay weekly or bi-weekly each such employee”
“any employee discharged from such employment shall be paid in full on the day of his discharge”
“hourly rate, and the amounts of deductions or increases made for the pay period.”
- 13Pay and RecordkeepingMassachusetts Attorney General · Official source · Checked Pinpoint: Key Organizations; Key Organizations Fair Labor Hotlinewww.mass.gov/guides/pay-and-recordkeeping
What the source says
“Workers cannot be charged a fee to have access to their pay.”
“Attorney General's Fair Labor Division”
“(617) 727-3465”
- 14Questions 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.”
- 15MGL 151 Section 15 RecordsMassachusetts General Court · Official source · Checked Pinpoint: 151 § 15malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section15
What the source says
“of the hours worked each day and each week by each employee”
“Such records shall be kept on file for at least 3 years after the entry date of the record.”
- 16454 CMR 27 Minimum WageMassachusetts Department of Labor Standards · Official source · Checked Pinpoint: 454 CMR 27.03(2)(b)1www.mass.gov/doc/454-cmr-27-minimum-wage/download
What the source says
“the employer informs such employee in writing of the provisions of M.G.L. c. 151, § 7, paragraph three;”
- 17MGL 151 Section 16 PostingMassachusetts General Court · Official source · Checked Pinpoint: 151 § 16malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151/Section16
What the source says
“posted in a conspicuous place”
- 18Fact 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,”
- 19MGL 149 Section 148A RetaliationMassachusetts General Court · Official source · Checked Pinpoint: 149 § 148Amalegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section148A
What the source says
“No employee shall be penalized by an employer in any way”
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.