New Jersey tip laws (2026)
New Jersey employers can pay tipped workers $6.05 an hour in cash in 2026, with tips covering the rest of the $15.92 minimum wage. On January 1, 2027, the minimum rises to $16.48 and the tipped cash wage to $6.61. Card fees can't come out of tips.
New Jersey at a glance
Tip credit allowedNew Jersey: $15.92 an hour minimum wage. Tipped staff can be paid $6.05 cash, with up to $9.87 counted from tips.
| State minimum wage | $15.92/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $6.05 | Plus up to $9.87 in tips = $15.92.[1] |
| Max tip credit | $9.87 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[3] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[4] |
| Card tip payout | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[5] | |
| Local minimum wages | None | None on file.[3] |
Rates verified against the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in New Jersey?
In New Jersey you can take a tip credit of up to $9.87 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 $6.05 cash and count up to $9.87 in tips. Tips must cover the gap.[1][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 | Bartender, busser, food runner and host: must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| 04 | Give managers or supervisors a share? | No | Federal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[5] |
| 05 | Let an owner keep any of the tips? | No | Federally covered employers cannot keep employees' tips. Active owners with a 20% equity stake count as managers.[5] |
| 06 | Pick your own split (hours, points or percentages)? | Depends | Employer may require a pool and must notify employees of the required contribution; only actual retained tips support the credit.[4] |
| 07 | Take card processing fees out of tips? | No | The worker gets the full tip on the slip.[4] |
| 08 | Hold card tips until payday? | Deadline | Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[5] |
| 09 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[4][6][5] |
| 10 | Keep a mandatory service charge for the house? | Federal rule | Compulsory service charges are not tips. They can't count toward the tip credit, even if paid out to staff.[4] |
| 11 | Pay tips on a payroll card? | Depends | With the worker's consent. Offer another way to get paid too.[6][7] |
Not covered here? Ask the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour at 609-292-2305 or on nj.gov/labor/wageandhour.
03State vs federal
New Jersey vs federal law
New Jersey sets a stricter rule than federal law on 3 of the 9 rules below, starting with a $15.92 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | New Jersey | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[5] | New Jersey$15.92[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[5] | New Jersey$6.05[1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[5] | New Jersey$9.87[2] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[5] | New JerseyMore than $30 a month in tips kept by the worker.[4] | 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.[5] | New JerseyFederal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[5] | Federal applies |
| 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] | New JerseyNot allowed[4] | Stricter |
| Card tip payoutFederal applies | 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] | New JerseyFederal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[5] | Federal applies |
| 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.[5] | New JerseyCompulsory service charges are not tips. They can't count toward the tip credit, even if paid out to staff.[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.[5] | New Jersey1.5 times the full regular rate after 40 hours. Figure it from the full minimum wage, and the tip credit doesn't grow for overtime.[4] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how New Jersey fits among the four tip credit classes.
Not covered here? Ask the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour at 609-292-2305 or on nj.gov/labor/wageandhour.
State rules
Where New Jersey goes further than federal law
Three state rules change how a New Jersey restaurant handles tips, even where federal law is looser.[4]
- 01
80/20 still applies
Related non-tipped duties past 20% of work time get no tip credit.[4]
- 02
No card fees from tips
Processing costs can't be shifted onto tips, whether or not a tip credit is taken.[4]
- 03
Service charges aren't tips
Compulsory service charges and large-party charges can't count toward the tip credit.[4]
04Wages
Minimum wage and the tip credit in New Jersey
In New Jersey employers can pay tipped staff $6.05 an hour and count up to $9.87 in tips toward the $15.92 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in New Jersey
A busy week with $296.10 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Retained tips must cover the claimed credit. Give advance state notice, make up any shortfall, and keep the pool limited to eligible workers.[4]
- Who counts as tipped
- More than $30 a month in tips kept by the worker.[4]
- Overtime
- 1.5 times the full regular rate after 40 hours. Figure it from the full minimum wage, and the tip credit doesn't grow for overtime.[4]
- Side work and dual jobs
- New Jersey keeps the 80/20 rule. Related non-tipped work past 20% of hours gets no tip credit. A separate non-tipped job gets full minimum.[4]
Other rates
| Rate | Hourly |
|---|---|
| Tier Seasonal and small employersFewer than 6 employees or seasonal work. Tipped workers paid with a tip credit use the general rate instead. Since .[1] | $15.23 |
| Youth or training Approved training wageEstablished training program, first 120 hours, no prior similar experience, and safeguards against displacing other workers. Rate set by formula: 90% of the general applicable state minimum wage.[3] | $14.33* |
* Worked out by Ferry from the formula, using the $15.92 state minimum wage. Not an official figure.
Scheduled increases
- Now, since $15.92
- $16.48General statewide rate. N.J. Const. art. I, ¶ 23; N.J.A.C. 12:56-3.1; 2027 official notice. The tipped cash wage rises to $6.61. The maximum tip credit stays $9.87[1]
- $16.25Statewide employers with fewer than 6 employees and seasonal employment. N.J.A.C. 12:56-3.2; 2027 official notice[1]
05Local rates
City and county minimum wages in New Jersey
No city or county minimum wages above the $15.92 state rate are on file for New Jersey.[3]
06Tip pool
Who can be in the tip pool in New Jersey
New Jersey allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Bartender | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Busser | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Food runner | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Host | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Barback | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Expo | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Leadership | ||
| Shift lead | Depends | Must actually qualify as a tipped employee; supervisory exclusion still applies.[4][3][5] |
| Manager or supervisor | Not allowed | Federal covered employers: no receipt of employees’ pooled tips.[5] |
| Owner | Not allowed | Federal covered employers: no receipt of employees’ pooled tips.[5] |
- Managers and supervisors
- Federal rule for covered employment: no manager/supervisor may receive employees’ pooled tips; directly and solely provided personal service is separate.[5]
- Owners
- Federally covered employers cannot keep employees' tips. Active owners with a 20% equity stake count as managers.[5]
- Who sets the percentages
- Employer may require a pool and must notify employees of the required contribution; only actual retained tips support the credit.[4]
- Cap on what a pool can take
- No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[5][3]
- Pooling allowed
- Yes.[3]
Not covered here? Ask the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour at 609-292-2305 or on nj.gov/labor/wageandhour.
07Put it to work
Setting up a tip pool in New Jersey
Under New Jersey rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Depends on the facts, left out of this example. | ||
| Kim | Not in the pool. Depends on the facts, left out of this example. | ||
| Rafa | Not in the pool. Depends on the facts, left out of this example. | ||
| Dana | Not in the pool. Federal covered employers: no receipt of employees’ pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet New Jersey'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 New Jersey
New Jersey 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 | Compulsory service charges are not tips. They can't count toward the tip credit, even if paid out to staff.[4] |
| 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 | No state rule. Federal law sets no menu or receipt notice rule.[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 New Jersey say?Federal ruleCompulsory service charges are not tips. They can't count toward the tip credit, even if paid out to staff.[4]
- Step 3Check the cityNo city service charge rules on file for New Jersey.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[3]
- Large-party auto gratuities
- A restaurant additional charge for larger parties is not a tip under state agency guidance.[4]
Local service charge rules
No local service charge rules on file for New Jersey.
More on the difference: service charge vs tip.
09Card tips
Card tips in New Jersey: fees and payout timing
In New Jersey the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.
Employers can't pass any credit or debit processing cost onto employee tips, whether or not they take a tip credit.[4]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineNew Jersey rule Federal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[5]
- Last dayFinal pay Due by the regular payday for the work period, whether the worker quits or is fired. Regulations cap it at 10 days after period end.[6][7]
Paydays: Generally at least twice each calendar month on advance-designated regular paydays; special salaried classes may be monthly.[6]
Paying tips on a payroll card
- Allowed?Depends
- Worker consent needed?Yes
- Free way to get the money?State ruleAt least once per pay period, full wages can be withdrawn without fee or difficulty. Fees must be disclosed, with written consent.[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.[5][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.[12][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 New Jersey
Keep each tipped worker's tips and hours on record, shift by shift. New Jersey: keep required state records for 6 years.
New Jersey State
- Tip records Employer keeps each worker’s total gratuities by payroll week; workers report daily or weekly as required; wage records required.[3]
- How long to keep them Keep required state records for 6 years.[3]
- Tip credit notice Required. Advance notice covers the cash wage, the claimed credit, the tip-retention and pool limits, and that no notice means no credit.[3]
- Posters and forms NJ Wage and Hour Law abstract; NJ wage-payment/recordkeeping notices.[3][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.[5]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[13]
- 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 New Jersey?
Workers in New Jersey can file a tip or wage claim with the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour (609-292-2305). Filing is free, and this page can't settle a dispute; the state can.[7]
- Phone
- 609-292-2305[7]
- Website
- nj.gov/labor/wageandhour
Retaliation: Retaliation for wage complaints or proceedings is barred. Adverse action within 90 days of a wage complaint can trigger a legal presumption.[3]
Penalties: Recovery can include unpaid wages plus liquidated damages up to 200%, other statutory penalties and attorney fees.[3]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedNo employer-loss deductions from tips; card-processing fees expressly barred.[4][6]
- BreakageNot allowedNo employer-loss deductions from tips; card-processing fees expressly barred.[4][6]
- Register shortagesNot allowedNo employer-loss deductions from tips; card-processing fees expressly barred.[4][6]
- UniformsNot allowedEmployer cannot take tips for uniform costs; ordinary cash-wage deductions are governed separately.[4]
- Card processing feesNot allowedNo employer-loss deductions from tips; card-processing fees expressly barred.[4][6]
- A manager's shareNot allowedFederal covered employers cannot retain employees’ tips.[5]
11Law changes
What changed in New Jersey tip law, and what's coming
Next scheduled change: the New Jersey minimum wage goes to $16.48 on .
Bills and ballot measures
Nothing pending as of .
Key statutes
- NJS 34:11-56a4; NJAC 12:56-3.5
- NJAC 12:56-4.4, 4.6–4.8, 8.4
- NJAC 12:55-2.4
- NJS 34:11-56a24–25
12FAQ
New Jersey tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about New Jersey tip law, each linked to its source.
What is New Jersey's tipped minimum wage in 2026?
$6.05 an hour in cash. Cash wages plus tips must reach the general minimum, currently $15.92.[1]
What changes on January 1, 2027?
Does the lower small-employer rate apply to tipped workers?
Not when the employer takes a tip credit. Those workers use the general rate, so wage plus tips must reach $15.92 in 2026.[1]
Can card-processing fees come out of tips?
No. New Jersey bars using employees' tips to cover credit or debit processing fees.[4]
Who can be in a tip pool?
Is a mandatory service charge a tip?
No. Compulsory service charges and large-party charges are not tips, even if staff get the money.[4]
Does New Jersey still use the 80/20 rule?
Yes. No tip credit applies to related non-tipped work once it passes 20% of the worker's time.[4]
How long must wage and tip records be kept?
Six years. Employers also track each worker's total tips by payroll week.[3]
13Compare
How New Jersey compares with nearby states
New Jersey borders Delaware, New York and Pennsylvania. New York pays a higher minimum wage than New Jersey's $15.92. 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 New Jersey: Tip credit, cash wage above federal.
- 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
- 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
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13
- Ohio tip laws$11.00 min wage $5.50 tipped cash wage Also a tip credit with a cash wage above $2.13
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 New Jersey setup.
14Sources
Sources for New Jersey tip laws
Every figure on this page links to one of these 13 sources: 9 for New Jersey and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1New Jersey Minimum Wage Chart MW 570New Jersey Department of Labor and Workforce Development · Official source · Page updated · Checked Pinpoint: 2026 table row; 2027 table rowwww.nj.gov/labor/wageandhour/assets/PDFs/minimumwage_postcard.pdf
What the source says
“January 1, 2026 $15.92 $15.23 $14.20 $6.05 $18.92”
“January 1, 2027* $16.48 $16.25 $15 $6.61 $19.48”
- 2State Tipped Minimum Wage TableU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: New Jersey rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“New Jersey 6 $15.92 $9.87 $6.05 More than $30”
- 3NJ Wage and Hour Laws and RegulationsNew Jersey Department of Labor and Workforce Development · Official source · Checked Pinpoint: 12:56-3.4(a); 12:56-8.4(b)www.nj.gov/labor/wageandhour/tools-resources/laws/wageandhourlaws.shtml
What the source says
“for the first 120 hours of work after having been hired , be paid a training wage of not less than 90 percent of the minimum hourly wage”
“Gratuities shall be the property of the tipped employee.”
“Gratuities shall be restored to the tipped employee except when gratuities are pooled, voluntarily by the employees or as a policy of management.”
- 4My Work Rights Tipped WorkersNew Jersey Department of Labor and Workforce Development · Official source · Checked Pinpoint: What is a tip credit?; Who is a tipped employee?; Overtime questionwww.nj.gov/labor/myworkrights/worker-protections/tipped_workers/index.shtml
What the source says
“In order to apply the maximum tip credit amount under the law, the employer must show that the employee received at least that amount in actual tips.”
“Only tips kept by the employee count toward the $30 threshold for tipped employee status.”
“When an employer takes a tip credit, overtime is calculated on the full minimum hourly wage, not the lower cash wage payment.”
- 5Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Employers, Including Managers and Supervisors; Credit Cards; Traditional Tip Poolingwww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“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.”
“Under federal law, the amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.”
“An employer may not receive tips from such a tip pool and may not allow managers and supervisors to receive tips from the pool.”
- 6Wage and Hour Worker FAQsNew Jersey Department of Labor and Workforce Development · Official source · Checked Pinpoint: How often must an employee be paid?; Final wages question; Payroll debit card conditionswww.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml
What the source says
“Most employers are required to pay wages at least twice during each calendar month, on regular paydays designated in advance by the employer.”
“The employer may wait until the next regular payday designated for the pay period regardless of whether the employee quit or was fired.”
“The employer cannot make a payroll debit card a condition of hire or continued employment.”
- 7Selected NJ Labor Laws and RegulationsNew Jersey Department of Labor and Workforce Development · Official source · Checked Pinpoint: 34:11-4.6(d); Appendix A recordkeeping contact; 12:55-2.4 headingwww.nj.gov/labor/wageandhour/tools-resources/laws/selectedstatelaborlaws.shtml
What the source says
“Keep posted in a place accessible to his employees an abstract of P.L. 1965. C.173 (C. 34:11-4.1 et seq.) furnished by the commissioner”
“609-292-2305”
“12:55-2.4 Time and mode of payment”
- 8Public Notice Minimum Wage 2027New Jersey Department of Labor and Workforce Development · Official source · Page updated 2026 · Checked www.nj.gov/labor/assets/PDFs/Legal%20Notices/Other/Public%20Notice%20Minimum%20Wage%202027_FINAL%202.pdf
- 92027 Minimum Wage AnnouncementNew Jersey Department of Labor and Workforce Development · Official source · Page updated · Checked www.nj.gov/labor/lwdhome/press/2026/20260929_min_wage.shtml
- 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”
- 12Questions 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.”
- 13Fact 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,”
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.