Michigan tip laws (2026)
Michigan's minimum wage is $13.73 an hour in 2026, and tipped workers can be paid $5.49 cash with an $8.24 tip credit. On January 1, 2027 the minimum hits $15.00 and the tipped cash wage $6.30. Tip sharing has to be voluntary, so employers can't require a pool.
Michigan at a glance
Tip credit allowedMichigan: $13.73 an hour minimum wage. Tipped staff can be paid $5.49 cash, with up to $8.24 counted from tips.
| State minimum wage | $13.73/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $5.49 | Plus up to $8.24 in tips = $13.73.[2] |
| Max tip credit | $8.24 | Counted from tips.[2] |
| Tip pooling | Depends | Voluntary pools only.[3] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[3] |
| Card tip payout | Card tips are due by the regular payday under federal rules, without waiting for the card company to pay.[4] | |
| Local minimum wages | None | State law blocks local rates.[5] |
Rates verified against the Michigan Department of Labor and Economic Opportunity, 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 Michigan?
In Michigan you can take a tip credit of up to $8.24 an hour, can't require 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 $5.49 cash and count up to $8.24 in tips. Tips must cover the gap.[2] |
| 02 | Make staff join a tip pool? | No | Pools have to be voluntary.[3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders: Only if the bartender chooses to share, and the recipient is in the chain of service and not mainly a manager. Bussers, food runners and hosts: Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| 04 | Include cooks and dishwashers? | Depends | State law allows only voluntary sharing with chain-of-service workers. Federal law keeps cooks and dishwashers out when a tip credit is taken.[3] |
| 05 | Give managers or supervisors a share? | No | Federal law bars managers and supervisors from other workers' tips. They can keep tips for service they directly and solely provide.[4] |
| 06 | Let an owner keep any of the tips? | No | Federal law bars employers from keeping any part of workers' tips, directly or through a pool.[4] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | Workers decide what they share. Employers don't set required percentages under Michigan law.[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 | Card tips are due by the regular payday under federal rules, without waiting for the card company to pay.[4] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3] |
| 11 | Keep a mandatory service charge for the house? | Yes | Yes, by default.[4] |
| 12 | Pay tips on a payroll card? | Yes | Allowed. Offer another way to get paid too.[6] |
03State vs federal
Michigan vs federal law
Michigan sets a stricter rule than federal law on 3 of the 10 rules below, starting with a $13.73 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Michigan | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[4] | Michigan$13.73[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[4] | Michigan$5.49[2] | Stricter |
| Max tip creditHigher credit | Federal$5.12[4] | Michigan$8.24[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[4] | MichiganNo monthly dollar test in state law. Actual tips have to cover the credit. The federal more-than-$30-a-month test applies separately.[7] | 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.[4] | MichiganFederal law bars managers and supervisors from other workers' tips. They can keep tips for service they directly and solely provide.[4] | Federal applies |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[4] | MichiganState law allows only voluntary sharing with chain-of-service workers. Federal law keeps cooks and dishwashers out when a tip credit is taken.[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.[4] | MichiganNot 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.[4] | MichiganCard tips are due by the regular payday under federal rules, without waiting for the card company to pay.[4] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[4] | MichiganThe business's money[4] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[4] | MichiganOvertime after 40 hours a week. Figure it on the full minimum or regular rate, then subtract the normal tip credit once.[4] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Michigan fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Michigan
In Michigan employers can pay tipped staff $5.49 an hour and count up to $8.24 in tips toward the $13.73 minimum. If tips fall short, the employer makes up the difference.[2]
One server, one slow 30-hour week in Michigan
A busy week with $247.20 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Written notice at or before hire, written consent from the worker, and real tips that cover the gap. Workers keep their tips.[3]
- Who counts as tipped
- No monthly dollar test in state law. Actual tips have to cover the credit. The federal more-than-$30-a-month test applies separately.[7]
- Overtime
- Overtime after 40 hours a week. Figure it on the full minimum or regular rate, then subtract the normal tip credit once.[4]
- 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.[9][10][3]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training New employees under 20First 90 days only. Employers can't push out other workers to use it.[11] | $4.25 |
| Youth or training Under 18 state minimum85% of the full minimum. Federal law and any more protective rule still apply.[11] | $11.67 |
Scheduled increases
- Now, since $13.73
- $15.00General statewide minimum wage. 2025 PA1; MCL 408.934. Tipped cash wage $6.30 with an $8.70 credit. The cash share then climbs to 44%, 46%, 48% and 50% from 2028 to 2031[1]
06Tip pool
Who can be in the tip pool in Michigan
Michigan allows tip pools, but only voluntary ones. 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 | Only if the server chooses to share, and the recipient is in the chain of service and not mainly a manager.[3] |
| Bartender | Depends | Only if the bartender chooses to share, and the recipient is in the chain of service and not mainly a manager.[3] |
| Busser | Depends | Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| Food runner | Depends | Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| Host | Depends | Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| Barback | Depends | Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| Expo | Depends | Can receive voluntary shares as part of the chain of service. Federal tip-credit pool limits also apply.[3] |
| Back of house | ||
| Cook | Depends | Only voluntary shares, and only if part of the chain of service. Federal rules keep cooks out of tip-credit pools.[3] |
| Dishwasher | Depends | Only voluntary shares, and only if part of the chain of service. Federal rules keep dishwashers out of tip-credit pools.[3] |
| Leadership | ||
| Shift lead | Depends | Only if their duties aren't mainly managerial or supervisory, and the sharing is voluntary.[3] |
| Manager or supervisor | Not allowed | Can't receive other workers' tips. Tips from service they directly and solely provide are separate.[3] |
| Owner | Not allowed | Employers can't keep any part of workers' tips, directly or through a pool.[3] |
- Managers and supervisors
- Federal law bars managers and supervisors from other workers' tips. They can keep tips for service they directly and solely provide.[4]
- Owners
- Federal law bars employers from keeping any part of workers' tips, directly or through a pool.[4]
- Back of house
- State law allows only voluntary sharing with chain-of-service workers. Federal law keeps cooks and dishwashers out when a tip credit is taken.[3]
- Who sets the percentages
- Workers decide what they share. Employers don't set required percentages under Michigan law.[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.[4][3]
- Pooling allowed
- It depends.[3]
Tip pools
Michigan tip sharing is voluntary only
Federal law lets employers require a pool. Michigan's statute says workers keep their tips and share only by choice.[3][4]
Federal rule
- Employers can require a pool
- Cooks and dishwashers stay out when a tip credit is taken
- Managers and owners get no share
Michigan rule
- Workers keep the entire tip
- Sharing is the worker's choice
- Recipients must be in the chain of service
- No one whose duties are mainly managerial
07Put it to work
Setting up a tip pool in Michigan
Under Michigan 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. Can't receive other workers' tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Michigan'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 Michigan
In Michigan a mandatory service charge belongs to the business by default. A tip is the guest's choice and belongs to staff.
| 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 | The business, by default.[4] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[4] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[12][13] |
| Guest notice | None needed | A written plan showing how service charges are distributed, given to both employees and customers.[3] |
- 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 Michigan say?Business owns it by defaultThe business, by default.[4]
- Step 3Check the cityNo city service charge rules on file for Michigan.
- Menu and receipt notice
- A written plan showing how service charges are distributed, given to both employees and customers.[3]
- Large-party auto gratuities
- A voluntary customer payment is a tip. A required automatic charge is a service charge and follows the written-plan rule.[3]
Local service charge rules
No local service charge rules on file for Michigan.
More on the difference: service charge vs tip.
09Card tips
Card tips in Michigan: fees and payout timing
In Michigan the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: card tips are due by the regular payday under federal rules, without waiting for the card company to pay.
Workers keep the entire tip, except what they choose to share. No exception for card-processing fees was 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.
- DeadlineMichigan rule Card tips are due by the regular payday under federal rules, without waiting for the card company to pay.[4]
- Last dayFinal pay Quit or fired: final pay is due as soon as the amount can be figured with due diligence.[14]
Paydays: Generally twice a month. Weekly or biweekly pay is due within 14 days, monthly pay within 15 days.[15]
Paying tips on a payroll card
- Allowed?Yes
- Worker consent needed?DependsWritten consent is the default. A deposit-or-card choice form with a 30-day no-reply rule is the main exception.[6]
- Free way to get the money?State ruleAt least one free withdrawal or transfer each pay period, up to the full balance, plus free balance checks.[6]
- Must you offer another option?Yes
- 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.[4][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.[16][3]
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 Michigan
Keep each tipped worker's tips and hours on record, shift by shift. Michigan: payroll records for 3 years.
Michigan State
- Tip records Keep pay and deduction records plus tip-credit notices, consents and service-charge plans. Paystubs show hours, gross pay and deductions.[17]
- How long to keep them Payroll records for 3 years. Tip-rule records for at least 3 years after the worker's last pay period.[3]
- Tip credit notice Required. Written notice of the tip rules at or before hire, plus the worker's written consent. The federal notice applies too.[3]
- Posters and forms Michigan minimum-wage/IWOWA posting under 408.937; Written tip-credit notice and employee consent; Written service-charge distribution plan for employees and consumers.[18][3]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[4]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[19]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[4]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Michigan?
Workers in Michigan can file a tip or wage claim with the Michigan Department of Labor and Economic Opportunity, Wage and Hour Division (855-464-9243). Filing is free, and this page can't settle a dispute; the state can.[18]
- Phone
- 855-464-9243[2]
- Website
- michigan.gov/wagehour
Retaliation: No firing or punishing workers for wage complaints, testimony or using their rights. Remedies include reinstatement and back pay.[20]
Penalties: Unpaid wages plus an equal amount in damages, costs and fees. Fines up to $2,500 for tipped-wage violations, $1,000 otherwise.[8]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips can't cover this. They stay the worker's property, except what the worker chooses to share.[3]
- BreakageNot allowedTips can't cover this. They stay the worker's property, except what the worker chooses to share.[3]
- Register shortagesNot allowedTips can't cover this. They stay the worker's property, except what the worker chooses to share.[3]
- UniformsNot allowedTips can't cover this. They stay the worker's property, except what the worker chooses to share.[3]
- Card processing feesNot allowedWorkers keep the entire tip. No card-fee exception was found.[3]
- A manager's shareNot allowedWorkers keep the entire tip. Managers and employers get no share.[3]
11Law changes
What changed in Michigan tip law, and what's coming
Next scheduled change: the Michigan minimum wage goes to $15.00 on . Most recent change: 2025 PA 1 set the new wage and tipped percentages, voluntary-only sharing, written service-charge plans and a higher fine ().
Key statutes
- MCL 408.934, 934b, 934d
- MCL 408.472,475–479
- MCL 408.939
- MCL 123.1385
Not covered here? Ask the Michigan Department of Labor and Economic Opportunity, Wage and Hour Division at 855-464-9243 or on michigan.gov/wagehour.
12FAQ
Michigan tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Michigan tip law, each linked to its source.
What is Michigan's tipped minimum wage in 2026?
What changes in 2027?
Can a Michigan employer require a tip pool?
Who can a server share tips with?
Coworkers who are directly or indirectly part of the chain of service and whose jobs aren't mainly managerial or supervisory.[3]
Do tipped workers have to agree to the tip credit?
Yes. The employer has to explain the rules in writing at or before hire and get the worker's written consent.[3]
What do customers have to be told about service charges?
Employers give both workers and customers a written plan for how service charges are distributed. Charges paid to staff are on top of wages.[3]
Can tips pay card-processing fees?
Michigan law says workers keep the entire tip, except what they choose to share. No exception for card fees was found.[3]
Can Michigan employers pay wages on a payroll card?
Yes, with written consent or the state's deposit-or-card choice process. The card has to allow at least one free withdrawal each pay period.[6]
13Compare
How Michigan compares with nearby states
Michigan borders Indiana, Ohio, Wisconsin and Illinois. Illinois pays a higher minimum wage than Michigan's $13.73. 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 Michigan: 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
- Massachusetts tip laws$15.00 min wage $6.75 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
- 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
- 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
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 Michigan setup.
14Sources
Sources for Michigan tip laws
Every figure on this page links to one of these 20 sources: 14 for Michigan and 6 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1MCL 408.934 Minimum WageMichigan Legislature · Official source · Checked Pinpoint: 408.934(1)(b); 408.934(1)(c); annual indexing after 2027www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-934
What the source says
“Beginning January 1, 2026, $13.73.”
“Beginning January 1, 2027, $15.00.”
- 2Minimum Wage and Overtime FAQMichigan Department of Labor and Economic Opportunity · Official source · Checked Pinpoint: Agency 2026 table; Agency FAQ contactwww.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/frequently-asked-questions/wage-and-hour/minimum-wage-and-overtime-faq
What the source says
“January 1, 2026 $13.73 $5.49 $8.24 $11.67”
“www.michigan.gov/wagehour”
“855-464-9243 (4MIWAGE)”
- 3MCL 408.934d GratuitiesMichigan Legislature · Official source · Checked Pinpoint: 408.934d(1)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-934d
What the source says
“The employee's employer informed the employee of the provisions of this section, in writing, at or before the time of hire, and the employee gave written consent.”
“Minimum hourly wage; establishment; conditions; percentages; gratuities”
“This subdivision does not prohibit an employee from voluntarily sharing the employee's gratuities with another employee”
- 4Fact Sheet 15 Tipped Employees Under the FLSAUnited States Department of Labor · Official source · Checked Pinpoint: Federal overtime; state 408.934a; Employers, Including Managers and Supervisors, May Not Keep Tipswww.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”
“A manager or supervisor may keep only those tips that they receive directly from a customer for the service they directly and solely provide.”
“Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.”
- 5MCL 123.1385 Local Wage PreemptionMichigan Legislature · Official source · Checked Pinpoint: 123.1385www.legislature.mi.gov/Laws/MCL?objectName=mcl-123-1385
What the source says
“requiring an employer to pay to an employee a wage higher than the state minimum hourly wage rate”
“123.1385”
- 6MCL 408.476 Payroll Debit CardsMichigan Legislature · Official source · Checked Pinpoint: 408.476(1)(d); 408.476(3),(4); 408.476(6)(a),(c)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-476
What the source says
“Issuing a payroll debit card that complies with subsection (6).”
“Except as provided in subsection (4)”
“Entitles the employee to make at least 1 withdrawal or transfer without charge each pay period”
- 7Minimum Wages for Tipped Employees July 1/2026United States Department of Labor · Official source · Page updated · Checked Pinpoint: Michigan rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Michigan 15 $13.73 $8.24 $5.49 Not specified”
- 8MCL 408.939 RemediesMichigan Legislature · Official source · Checked Pinpoint: 408.939(1),(3),(4)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-939
What the source says
“An employer that fails to pay the minimum hourly wage to an employee as described in section 4d(1) is subject to a civil fine of not more than $2,500.00.”
“408.939”
- 9Tip 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 ).”
- 10Field 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).”
- 11MCL 408.934b Youth WagesMichigan Legislature · Official source · Checked Pinpoint: 408.934b(1); 408.934b(2); 13.73x.85 roundedwww.legislature.mi.gov/Laws/MCL?objectName=mcl-408-934b
What the source says
“a training hourly wage of $4.25 for the first 90 days of that employee's employment.”
“the minimum hourly wage for an employee who is less than 18 years of age is 85%”
- 12Tip 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.”
- 13Revenue 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”
- 14MCL 408.475 Final PayMichigan Legislature · Official source · Checked Pinpoint: 408.475(1)-(3)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-475
What the source says
“An employer shall immediately pay to an employee who has been discharged from employment all wages earned and due, as soon as the amount can with due diligence be determined.”
- 15MCL 408.472 Pay FrequencyMichigan Legislature · Official source · Checked Pinpoint: 408.472(1),(3),(4)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-472
What the source says
“The payday occurs on or before the fourteenth day following the end of the work period”
- 16Questions 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.”
- 17MCL 408.479 RecordsMichigan Legislature · Official source · Checked Pinpoint: 408.479(1),(2); tip 408.934d(6)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-479
What the source says
“a separate itemization of deductions”
- 18Improved Workforce Opportunity Wage Act Complete Through PA114/2026Michigan Legislature · Official source · Page updated · Checked Pinpoint: 408.937 or 408.934dwww.legislature.mi.gov/documents/mcl/pdf/mcl-Act-337-of-2018.pdf
What the source says
“posted in a conspicuous place in the workplace”
“department of labor and economic opportunity”
- 19Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 20MCL 408.483 RetaliationMichigan Legislature · Official source · Checked Pinpoint: 408.483(1)www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-483
What the source says
“An employer shall not discharge an employee or discriminate against an employee because the employee filed a complaint”
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.