North Dakota tip laws (2026)
North Dakota's minimum wage is $7.25 an hour, and tipped workers can be paid $4.86 in cash because the tip credit is capped at 33%, or $2.39. An employer can't impose a tip pool on its own: a majority of tipped employees has to vote yes. Cooks and dishwashers don't count as tipped service staff.
North Dakota at a glance
Tip credit allowedNorth Dakota: $7.25 an hour minimum wage. Tipped staff can be paid $4.86 cash, with up to $2.39 counted from tips.
| State minimum wage | $7.25/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $4.86 | Plus up to $2.39 in tips = $7.25.[2] |
| Max tip credit | $2.39 | Counted from tips.[3] |
| Tip pooling | Allowed | Mandatory pools: it depends.[4] |
| Card-fee deduction | Unsettled | No North Dakota law found. The federal actual-fee rule applies. See what we found[2][5] |
| 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 | State law blocks local rates.[1] |
Rates verified against the North Dakota Department of Labor and Human Rights 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 North Dakota?
In North Dakota you can take a tip credit of up to $2.39 an hour. 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 $4.86 cash and count up to $2.39 in tips. Tips must cover the gap.[1][2][3] |
| 02 | Make staff join a tip pool? | Depends | The employer can't impose a pool alone. A majority of tipped employees has to approve, and the vote gets recorded.[4] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4][5] |
| 04 | Include cooks and dishwashers? | No | Kitchen-only cooks and dishwashers aren't service employees under state rules. Pools are for tipped employees only, even when the employer pays full minimum.[4] |
| 05 | Give managers or supervisors a share? | No | Under federal rules, managers and supervisors can't take employees' pooled tips. Tips from service they alone provide are a separate matter.[5] |
| 06 | Let an owner keep any of the tips? | No | State law says the employer can't keep employee tips. Federal rules also bar active owner-managers from them.[2][5] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | Tipped workers agree to the pool and the split. A majority vote, recorded in writing, is required, and 51% can call a new vote.[4] |
| 08 | Take card processing fees out of tips? | Unsettled | No North Dakota law found. The federal actual-fee rule applies. See what we found[2][5] |
| 09 | 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] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[2][5] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | For federally covered employment, compulsory service charges are not tips; amounts distributed to employees are wages included in the regular rate for overtime.[5] |
| 12 | Pay tips on a payroll card? | Depends | With the worker's consent. Offer another way to get paid too.[6] |
03State vs federal
North Dakota vs federal law
North Dakota sets a stricter rule than federal law on 2 of the 10 rules below. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | North Dakota | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[5] | North Dakota$7.25[1] | Same as federal |
| Tipped cash wageStricter | Federal$2.13[5] | North Dakota$4.86[2][1] | Stricter |
| Max tip creditStricter | Federal$5.12[5] | North Dakota$2.39[3] | Stricter |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[5] | North DakotaA service employee who regularly gets more than $30 a month in tips and gives direct, personal customer service.[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] | North DakotaUnder federal rules, managers and supervisors can't take employees' pooled tips. Tips from service they alone provide are a separate matter.[5] | 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.[5] | North DakotaKitchen-only cooks and dishwashers aren't service employees under state rules. Pools are for tipped employees only, even when the employer pays full minimum.[4] | State rule |
| Card fees from tipsState rule | 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] | North DakotaUnsettled. No North Dakota law found. The federal actual-fee rule applies. See what we found[2][5] | State rule |
| 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] | North DakotaFederal 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] | North DakotaFor federally covered employment, compulsory service charges are not tips; amounts distributed to employees are wages included in the regular rate for overtime.[5] | 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] | North DakotaOvertime is 1.5 times the regular rate after 40 hours a week. Figure it on the full rate; the credit doesn't grow.[4][5] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how North Dakota fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in North Dakota
In North Dakota employers can pay tipped staff $4.86 an hour and count up to $2.39 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in North Dakota
A busy week with $71.70 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, keep written proof that cash plus tips reach the full minimum, and cap the credit at 33%. Only service employees qualify.[4]
- Who counts as tipped
- A service employee who regularly gets more than $30 a month in tips and gives direct, personal customer service.[4]
- Overtime
- Overtime is 1.5 times the regular rate after 40 hours a week. Figure it on the full rate; the credit doesn't grow.[4][5]
- Side work and dual jobs
- No state rule. Federal rule applies: current 29 CFR 531.56(e) is the restored 1967 occupation-based dual-jobs rule. No tip credit for a separate non-tipped occupation; related duties within the tipped occupation need not themselves produce tips. The vacated 2021 federal 80/20 and 30-continuous-minute limits are not current regulatory limits. FAB 2026-1 withdraws historical opinion letters and confirms WHD enforcement guidance no longer sets specific time limits; it is agency guidance, not a new statute or regulation.[7][8][4]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training Licensed vocational studentNeeds a vocational program license from the commissioner. It isn't a general youth discount. Federal approval applies separately. Rate set by formula: at least 85% of the current state minimum.[4] | $6.16* |
* Worked out by Ferry from the formula, using the $7.25 state minimum wage. Not an official figure.
Scheduled increases
No statewide increase with a published amount is on file as of .
06Tip pool
Who can be in the tip pool in North Dakota
North Dakota allows tip pools. 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 | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Bartender | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Busser | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Food runner | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Host | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Barback | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Expo | Depends | Needs regular face-to-face customer service and more than $30 a month in tips, based on real duties, in an approved pool.[4] |
| Back of house | ||
| Cook | Not allowed | Cooking doesn't count as service work under state rules, so no pool share.[4] |
| Dishwasher | Not allowed | Dishwashing doesn't count as service work under state rules, so no pool share.[4] |
| Leadership | ||
| Shift lead | Depends | Needs regular face-to-face service and more than $30 a month in tips, in an approved pool. A federal manager can't take others' pooled tips.[4][5] |
| Manager or supervisor | Not allowed | Under federal rules for covered employers, no share of employees' pooled tips.[5] |
| Owner | Not allowed | Under federal rules for covered employers, no share of employees' pooled tips.[5] |
- Managers and supervisors
- Under federal rules, managers and supervisors can't take employees' pooled tips. Tips from service they alone provide are a separate matter.[5]
- Owners
- State law says the employer can't keep employee tips. Federal rules also bar active owner-managers from them.[2][5]
- Back of house
- Kitchen-only cooks and dishwashers aren't service employees under state rules. Pools are for tipped employees only, even when the employer pays full minimum.[4]
- Who sets the percentages
- Tipped workers agree to the pool and the split. A majority vote, recorded in writing, is required, and 51% can call a new vote.[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][4]
- Pooling allowed
- Yes.[4]
07Put it to work
Setting up a tip pool in North Dakota
Under North Dakota 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. Cooking doesn't count as service work under state rules, so no pool share. | ||
| Kim | Not in the pool. Cooking doesn't count as service work under state rules, so no pool share. | ||
| Rafa | Not in the pool. Dishwashing doesn't count as service work under state rules, so no pool share. | ||
| Dana | Not in the pool. Under federal rules for covered employers, no share 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 North Dakota'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
Tip pool vote
North Dakota tip pools start with a vote
An employer can't just announce a tip pool. Tipped employees vote on it, and 50% plus one of all tipped employees has to approve.[4]
- 1Hold a vote of the tipped employees.
- 2Get a yes from 50% plus one of all tipped employees.
- 3Keep a written record of the names and vote totals.
- 4Hold a new vote if 51% of tipped employees ask for one.
- 5Split only among tipped service employees. Kitchen-only cooks and dishwashers stay out.
08Service charges
Service charges vs tips in North Dakota
North Dakota 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 | For federally covered employment, compulsory service charges are not tips; amounts distributed to employees are wages included in the regular rate for overtime.[5] |
| 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[9][10] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[4] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does North Dakota say?Federal ruleFor federally covered employment, compulsory service charges are not tips; amounts distributed to employees are wages included in the regular rate for overtime.[5]
- Step 3Check the cityNo city service charge rules on file for North Dakota.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[4]
- Large-party auto gratuities
- Federal compulsory automatic charges are service charges rather than tips; state ownership or disclosure rules for these charges were not identified.[5]
Local service charge rules
No local service charge rules on file for North Dakota.
More on the difference: service charge vs tip.
09Card tips
Card tips in North Dakota: fees and payout timing
In North Dakota whether card fees can come out of tips depends on the conditions below. 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.
No North Dakota law found. The federal actual-fee rule applies. See what we found
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.
- DeadlineNorth Dakota 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 Any separation: by the regular payday for the period worked. When the employer ends the job, pay goes by certified mail unless agreed otherwise.[6]
Paydays: At least once each calendar month on regular agreed paydays designated in advance.[6]
Paying tips on a payroll card
- Allowed?Depends
- Worker consent needed?Yes
- Free way to get the money?State ruleThe card's bank or credit union has to be federally insured. No set number of free withdrawals was found. Federal card rules apply.[6][11]
- 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][4]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[12][4]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Unsettled
Card fees on tips in North Dakota: what we found
We found no North Dakota law on taking card fees out of tips, so the federal rule sets the limit.[5]
The federal rule that applies (DOL Fact Sheet #15)
- Only the actual card processing fee on the tip can come out.
- The deduction can't drop the worker's pay below the minimum wage.
- Card tips are paid by the next regular payday.[5]
What guides say online (unverified)
WorkforceHubHR guide Yes, employers may deduct credit card fees from tips
Says the deduction is allowed. Federal law still caps it at the actual fee on the tip.
workforcehub.com/hr-laws-and-regulations/north-dak…
These are third-party guides and pages we read online on November 5, 2026. They aren't legal advice and we haven't checked them against the statute. Ask the state labor office before you rely on them.
10Records
Records and notices in North Dakota
Keep each tipped worker's tips and hours on record, shift by shift. Federal law: payroll records at least 3 years, wage-math records 2 years.
North Dakota State
- Tip records Keep written proof for the tip credit, plus pool vote names and totals. Each pay period's voucher shows hours, rate and deductions.[4]
- How long to keep them Federal: payroll records at least 3 years, wage-math records 2 years. No state period was found for tip-credit and vote records, but they're still required.[13]
- Tip credit notice Required. Tell the worker before claiming the state credit, and keep written records that pay reached the full minimum. Federal notice rules also apply.[4]
- Posters and forms North Dakota Minimum Wage and Work Conditions poster; Written tip-pool vote record; Vocational student license application if applicable.[1][4]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[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 North Dakota?
Workers in North Dakota can file a tip or wage claim with the North Dakota Department of Labor and Human Rights (701-328-2660). Filing is free, and this page can't settle a dispute; the state can.[2]
- Phone
- 701-328-2660[2]
- Website
- nd.gov/labor
Retaliation: No firing or discrimination for testifying, planning to testify, or being thought likely to testify in minimum wage cases. Federal protections also apply.[1][14]
Penalties: Unpaid wages and interest; repeat claims can mean double or treble. Late final pay accrues up to 30 days. Violations: Class B misdemeanor.[6][1]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips can't pay for employer losses or uniforms. Deductions from cash wages follow separate rules.[2]
- BreakageNot allowedTips can't pay for employer losses or uniforms. Deductions from cash wages follow separate rules.[2]
- Register shortagesNot allowedTips can't pay for employer losses or uniforms. Deductions from cash wages follow separate rules.[2]
- UniformsNot allowedTips can't pay for employer losses or uniforms. Deductions from cash wages follow separate rules.[2]
- A manager's shareNot allowedFederal covered employers cannot retain employees’ tips.[5]
11Law changes
What changed in North Dakota tip law, and what's coming
No statewide increase with a published amount is on file for North Dakota as of .
No changes to North Dakota tip or wage rules on file for the last 24 months.
Bills and ballot measures
Nothing pending as of .
Key statutes
- NDCC 34-06-22–23
- NDAC 46-02-07-01, 02, 03
- NDCC 34-14-02–04.1, 09.1
- NDCC 34-06-18–19
12FAQ
North Dakota tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about North Dakota tip law, each linked to its source.
What is North Dakota's tipped minimum wage?
Can a restaurant require a tip pool?
Not on its own. Tipped employees vote, 50% plus one of all of them has to approve, and the employer keeps the names and vote totals.[4]
Can cooks or dishwashers share tips?
No. Kitchen-only cooking and dishwashing aren't service work under state rules, and pools are for tipped employees only.[4]
Can the owner keep employee tips?
No. Tips given to an employee belong to that employee, and the employer can't keep them.[2]
Can card fees come out of tips?
When is a final paycheck due?
By the regular payday for the period worked. When the employer ends the job, pay goes by certified mail unless both sides agree otherwise.[6]
Does a worker have to take a payroll card?
No. A stored-value card is the employee's choice, and the bank or credit union and the deposits have to be federally insured.[6]
Can a city set a higher wage?
No. State law bars cities and counties from requiring a living wage above the state minimum.[1]
13Compare
How North Dakota compares with nearby states
North Dakota borders Minnesota, Montana and South Dakota. Minnesota, Montana and South Dakota pay a higher minimum wage than North Dakota's $7.25. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
States with the same rules
Same tip credit class as North Dakota: Tip credit, cash wage above federal.
- New Hampshire tip laws$7.25 min wage $3.27 tipped cash wage Also a tip credit with a cash wage above $2.13
- New Mexico tip laws$12.00 min wage $3.00 tipped cash wage Also a tip credit with a cash wage above $2.13
- Iowa tip laws$7.25 min wage $4.35 tipped cash wage Also a tip credit with a cash wage above $2.13
- Connecticut tip laws$16.94 min wage $6.38 tipped cash wage Also a tip credit with a cash wage above $2.13
- Arkansas tip laws$11.00 min wage $2.63 tipped cash wage Also a tip credit with a cash wage above $2.13
- Wisconsin tip laws$7.25 min wage $2.33 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 North Dakota setup.
14Sources
Sources for North Dakota tip laws
Every figure on this page links to one of these 14 sources: 9 for North Dakota and 5 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1NDCC Chapter 34-06 Minimum Wages and HoursNorth Dakota Legislative Assembly · Official source · Checked Pinpoint: 34-06-22(1)(c), p. 5; 34-06-23(2), p. 5ndlegis.gov/cencode/t34c06.pdf
What the source says
“Effective July 24, 2009, a wage of at least seven dollars and twenty-five cents per hour.”
“a living wage mandate in an amount greater than the applicable minimum wage rate of this state.”
“The employer shall keep a copy of the summary posted in a conspicuous place”
- 2Wage and Hour FAQNorth Dakota Department of Labor and Human Rights · Official source · Checked Pinpoint: Minimum wage for servers; Can employer keep tips?; Agency footerwww.nd.gov/labor/wage-and-hour-faq
What the source says
“With the tip credit applied, the current minimum direct wage payable to a tipped employee is $4.86 per hour.”
“gratuities (tips) offered to an employee by a customer belong to the employee and may not be retained by the employer.”
“701.328.2660”
- 3State Tipped Minimum Wage TableU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: North Dakota rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“North Dakota $7.25 33% of the applicable minimum wage ($2.39) $4.86 More than $30”
- 4NDAC 46-02-07 Minimum Wage and Work Conditions OrderNorth Dakota Legislative Assembly · Official source · Page updated · Checked Pinpoint: 46-02-07-03(1), p. 8; 46-02-07-01(19), p. 2; 46-02-07-02(2), p. 4ndlegis.gov/information/acdata/pdf/46-02-07.pdf
What the source says
“The employer who elects to use the tip credit provision must inform the employee in advance”
“customarily and regularly receives more than thirty dollars a month in tips.”
“as long as the wage is not below eighty-five percent of the current state minimum wage.”
- 5Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Overtime Problems; Employers, Including Managers and Supervisors; Tip Credit, paragraph 2www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“The employer may not take a larger FLSA 3(m)(2)(A) tip credit for an overtime hour than for a straight time hour.”
“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.”
“Sums distributed to employees from service charges are not tips, but may be used to satisfy the employer’s minimum wage and overtime pay obligations under the FLSA.”
- 6NDCC Chapter 34-14 Wage CollectionNorth Dakota Legislative Assembly · Official source · Checked Pinpoint: 34-14-02, p. 1; 34-14-03, p. 1ndlegis.gov/cencode/t34c14.pdf
What the source says
“Every employer shall pay all wages due to employees at least once each calendar month on regular agreed paydays designated in advance by the employer.”
“the employee's unpaid wages or compensation becomes due and payable at the regular paydays established in advance by the employer”
“at the election of the employee when offered by the employer”
- 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).”
- 9Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 10Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 11Payroll Card Choice and DisclosuresConsumer Financial Protection Bureau · Official source · Checked www.consumerfinance.gov/ask-cfpb/if-my-employer-offers-me-a-payroll-card-do-i-have-to-accept-it-en-407
What the source says
“Your employer or the card issuer must provide you with the card’s terms and conditions.”
- 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 Federal RecordsU.S. Department of Labor · Official source · 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.”
“Records on which wage computations are based should be retained for two years”
“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).”
- 14Fact Sheet 77A Federal RetaliationU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Federal FLSA 15(a)(3)www.dol.gov/agencies/whd/fact-sheets/77a-flsa-prohibiting-retaliation
What the source says
“discharge or in any other manner discriminate against any employee because such employee has filed any 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.