Part of Ferry's 51-state tip laws guide

Ohio tip laws (2026)

Ohio's minimum wage is $11.00 an hour in 2026, and tipped workers can be paid $5.50 in cash, half the minimum. Small employers (under $405,000 a year, per the 2026 poster) and workers under 16 use the federal $7.25 instead. On January 1, 2027, the rates rise to $11.40 and $5.70; the 2027 small-employer line isn't settled yet.

Rates as of Last reviewed

Ohio at a glance

Tip credit allowed

Ohio: $11.00 an hour minimum wage. Tipped staff can be paid $5.50 cash, with up to $5.50 counted from tips.

Ohio tip and wage rates at a glance, as of Nov 3, 2026
State minimum wage$11.00/hrStatewide from .[1]
Tipped cash wage$5.50Plus up to $5.50 in tips = $11.00.[1]
Max tip credit$5.50Counted from tips.[2]
Tip poolingAllowedMandatory pools allowed.[3]
Card-fee deductionPro rata onlyOnly the tip's share of the fee.[3]
Card tip payoutFederal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3]
Local minimum wagesNoneState law blocks local rates.[4]

Rates verified against the Ohio Department of Commerce, Bureau of Wage and Hour Administration 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 Ohio?

In Ohio you can take a tip credit of up to $5.50 an hour, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.

Yes state law allows itNo state law says noDepends read the conditionFederal rule no state rule, federal applies
What restaurant operators can and can't do with tips in Ohio
NumberCan you…AnswerThe condition
01Take a tip credit against minimum wage?YesPay at least $5.50 cash and count up to $5.50 in tips. Tips must cover the gap.[1][2]
02Make staff join a tip pool?YesFederal rules cover required pools here. No separate Ohio pooling limit was found.[3]
03Include bartenders, bussers, runners and hosts?DependsBartender, busser, food runner and host: federal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
04Include cooks and dishwashers?DependsUnder federal rules, cooks and dishwashers can join only a pool where everyone gets the full cash minimum. State wage floors still apply.[3]
05Give managers or supervisors a share?NoUnder federal rules, managers and supervisors can't take employees' pooled tips. Tips from service they alone provide are a separate matter.[3]
06Let an owner keep any of the tips?NoCovered employers can't keep employees' tips. Active owners with a 20% stake count as managers.[3]
07Pick your own split (hours, points or percentages)?DependsCovered employers can require and set a valid pool contribution. No separate Ohio split rule was found.[3]
08Take card processing fees out of tips?Pro rataCovered employers can take only the tip's share of the actual card fee, without cutting required wages.[3]
09Hold card tips until payday?DeadlineFederal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3]
10Cover walkouts, breakage or register shortages from tips?NoNot from tips.[3]
11Keep a mandatory service charge for the house?Federal ruleFederal covered employment: compulsory service charges are not tips; sums distributed are wages and enter the overtime regular rate. No separate Ohio distribution rule identified.[3]
12Pay tips on a payroll card?Depends (federal)Federal rule: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[5]

03State vs federal

Ohio vs federal law

Ohio sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $11.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.

Ohio tip rules compared with federal rules (FLSA)
RuleFederal (FLSA)OhioComparison
Minimum wageStricterFederal$7.25[3]Ohio$11.00[1]Stricter
Tipped cash wageStricterFederal$2.13[3]Ohio$5.50[1]Stricter
Max tip creditHigher creditFederal$5.12[3]Ohio$5.50[2]Higher credit
Who counts as tippedState ruleFederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3]OhioCustomarily and regularly gets more than $30 a month in tips.[1]State rule
Managers in the poolFederal appliesFederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3]OhioUnder federal rules, managers and supervisors can't take employees' pooled tips. Tips from service they alone provide are a separate matter.[3]Federal applies
Kitchen in the poolFederal appliesFederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3]OhioUnder federal rules, cooks and dishwashers can join only a pool where everyone gets the full cash minimum. State wage floors still apply.[3]Federal applies
Card fees from tipsSame as federalFederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3]OhioTip's share of the fee only[3]Same as federal
Card tip payoutFederal appliesFederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3]OhioFederal covered employers must pay charged tips by the regular payday without waiting for card-company reimbursement; no separate state card-tip timing rule located.[3]Federal applies
Mandatory service chargesFederal appliesFederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3]OhioFederal covered employment: compulsory service charges are not tips; sums distributed are wages and enter the overtime regular rate. No separate Ohio distribution rule identified.[3]Federal applies
Overtime for tipped staffState ruleFederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3]OhioOvertime is 1.5 times the full regular rate after 40 hours, using federal methods. State overtime has a $150,000 employer threshold. The credit doesn't grow.[4][3]State rule

04Wages

Minimum wage and the tip credit in Ohio

In Ohio employers can pay tipped staff $5.50 an hour and count up to $5.50 in tips toward the $11.00 minimum. If tips fall short, the employer makes up the difference.[1]

Worked example

One server, one slow 30-hour week in Ohio

Minimum for the week: 30 × $11.00$330.00
Cash wage you pay: 30 × $5.50$165.00
Tips have to cover: 30 × $5.50$165.00
Tips actually earned$120.00
You top up the gap$45.00
Cash wageTips countedYour top-up

A busy week with $165.00 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.

Tip credit conditions
Pay at least half the minimum in cash and show cash plus tips reach the full minimum for all hours. Federal rules apply too.[6]
Who counts as tipped
Customarily and regularly gets more than $30 a month in tips.[1]
Overtime
Overtime is 1.5 times the full regular rate after 40 hours, using federal methods. State overtime has a $150,000 employer threshold. The credit doesn't grow.[4][3]
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

Other minimum wage rates in Ohio
RateHourly
Youth or training Employees under 16Paid at least the federal minimum instead of the higher state rate. Federal tipped rules apply separately.[1]$7.25

Scheduled increases

The next statewide increase is not confirmed yet.

Not covered here? Ask the Ohio Department of Commerce, Bureau of Wage and Hour Administration at 614-644-2239 or on com.ohio.gov.

Employer size

Which Ohio wage applies depends on gross receipts

Ohio has two wage tiers. Employers above a gross-receipts line pay the indexed state rate; smaller employers, and workers under 16, get the federal floor.[1][9][2]

Ohio wage tiers, 2026 and 2027[1][9][3][2]
Who20262027
Gross-receipts line$405,000 (2026 poster)Not settled
Employers above the line$11.00 minimum, $5.50 tipped cash$11.40 minimum, $5.70 tipped cash
Employers under the line$7.25; $2.13 cash only if federal tip-credit rules are metFederal floor
Workers under 16$7.25Federal floor

05Local rates

City and county minimum wages in Ohio

Ohio law doesn't let cities or counties set their own minimum wage, so $11.00 applies everywhere in the state.[4]

Local rates preempted[4]

06Tip pool

Who can be in the tip pool in Ohio

Ohio 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.

Who can share in a tip pool in Ohio, by role
RoleCan share?Condition
Front of house
ServerDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
BartenderDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
BusserDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
Food runnerDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
HostDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
BarbackDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
ExpoDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
Back of house
CookDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
DishwasherDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
Leadership
Shift leadDependsFederal eligibility turns on real duties and whether the pool pays everyone the full cash wage.[3]
Manager or supervisorNot allowedUnder federal rules for covered employers, no share of employees' pooled tips.[3]
OwnerNot allowedUnder federal rules for covered employers, no share of employees' pooled tips.[3]
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.[3]
Owners
Covered employers can't keep employees' tips. Active owners with a 20% stake count as managers.[3]
Back of house
Under federal rules, cooks and dishwashers can join only a pool where everyone gets the full cash minimum. State wage floors still apply.[3]
Who sets the percentages
Covered employers can require and set a valid pool contribution. No separate Ohio split rule was found.[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.[3][4]
Pooling allowed
Yes. Federal rules cover pools here. No separate Ohio pooling limit was found.[3]

07Put it to work

Setting up a tip pool in Ohio

Under Ohio 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.

The law decides who's in. You still have to run the split every shift and pay it out. That part is a math and payout job, and it's the same job whether you have one location or forty.
Saturday dinner pool$1,200.00
6 of 10 staff can share in Ohio
By %
By points
By hours
Servers 67.1%Bar 14.6%Support 18.3%
The same $1,200.00 pool split three ways, using roles that can share in Ohio
WhoBy %By pointsBy hours
MayaServer, 6 h, 10 pts$268.29$250.00$211.78
JordanServer, 6 h, 10 pts$268.29$250.00$211.76
PriyaServer, 6 h, 10 pts$268.29$250.00$211.76
SamBartender, 6 h, 8 pts$175.61$200.00$211.76
LuisBusser, 5 h, 5 pts$109.76$125.00$176.47
AvaFood runner, 5 h, 5 pts$109.76$125.00$176.47
TheoCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
KimCook, 7 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
RafaDishwasher, 6 hNot in the pool. Out here: this pool includes servers paid with a tip credit.
DanaManager or supervisor, 2 h (ran food)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 Ohio'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.

Support Pool contributors: Server $262.83 and Bartender $54.92, for a total of $317.75. Support Pool receivers, pooled by Day and distributed by Hours Worked: Jonah Kim, Busser, 6.50 hours, +$179.56. Sofia Nunez, Food Runner, 5.00 hours, +$138.19. Total 11.50 hours and $317.75.

Support pool split. Servers and bartenders pay into the support pool, split by hours worked.
Ferry Tip Manager

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

Run your own numbersPlug your staff and tips into the tip pooling calculator

08Service charges

Service charges vs tips in Ohio

Ohio 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.

Tips compared with service charges in Ohio
QuestionOptionalTipMandatoryService charge
Who sets the amountThe guestThe business
Who it belongs toThe worker it was left for, or the poolFederal covered employment: compulsory service charges are not tips; sums distributed are wages and enter the overtime regular rate. No separate Ohio distribution rule identified.[3]
Can it go to staff?Yes, through the poolYes. Amounts paid to staff are wages, not tips.[3]
How it's taxed (federal)Tip income the worker reportsRegular wages, with payroll taxes[10][11]
Guest noticeNone neededNo state rule. Federal law sets no menu or receipt notice rule.[4]
  1. 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.
  2. Step 2What does Ohio say?Federal ruleFederal covered employment: compulsory service charges are not tips; sums distributed are wages and enter the overtime regular rate. No separate Ohio distribution rule identified.[3]
  3. Step 3Check the cityNo city service charge rules on file for Ohio.
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, not tips; no separate Ohio compulsory-charge distribution rule identified.[3]

Local service charge rules

No local service charge rules on file for Ohio.

More on the difference: service charge vs tip.

09Card tips

Card tips in Ohio: fees and payout timing

In Ohio only the tip's share of the card processing fee can come out of a card tip. 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.

Card processing fees
Pro rataOnly the tip's share.

Covered employers can take only the tip's share of the actual card fee, without cutting required wages.[3]

When card tips have to land

  1. TonightGuest adds a tip On the card, at the table.
  2. CloseShift is tallied The pool is split by your rules.
  3. DeadlineOhio 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.[3]
  4. Last dayFinal pay No special final-pay deadline was found. The regular payday schedule applies, and unpaid undisputed wages can trigger prompt-pay damages.[12]

Paydays: Twice a month: the prior month's first half by the 1st, its second half by the 15th. Custom, contracts or faster pay can differ.[12]

Paying tips on a payroll card

  • Allowed?Depends (federal)No state rule. Federal rule applies: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[5][4]
  • Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[5][4]
  • Free way to get the money?State ruleFederal payroll-card terms, conditions and fees must be disclosed; no Ohio card-specific free-withdrawal frequency identified.[13]
  • Must you offer another option?YesFederal CFPB choice protection requires an alternative; no additional Ohio payroll-card provision identified.[13]
  • Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[3][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.[14][15]

Alice Anderson, Server, Downtown. Direct tips +$980.25, indirect tips +$0.00, tip outs -$147.07, tips payable $833.18. Tip Payment history, all Automatic with status Success: 2026-10-29 $833.18, 2026-10-28 $783.19, 2026-10-27 $733.20.

Employee tip payout. Each person's direct tips, tip outs, and payable amount, then paid automatically.
Ferry Pay and Pay Card

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

Customer story: BJ's Restaurants
200+locations across 30 states run Tip Manager and Ferry Pay
66%+reduction in cash-carrying costs
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
Jake Guild, Senior Vice President & Chief Accounting Officer, BJ's Restaurants
Read the BJ's case study

10Records

Records and notices in Ohio

Keep each tipped worker's tips and hours on record, shift by shift. Ohio: at least 3 years after the worker's last day under the constitution.

Ohio State

  • Tip records Keep each worker's name, address, job, pay rate, daily hours and gross pay. Workers can get their own records free. Federal tip records apply too.[4][3]
  • How long to keep them At least 3 years after the worker's last day under the constitution. The statute also says 3 years from hours worked.[4]
  • Tip credit notice Required. Covered employers tell workers the cash wage, credit amount, actual-tip limit and tip and pool rules before taking the credit.[3]
  • Posters and forms Current Ohio Minimum Wage Poster; 2025 statutory written/electronic pay statement.[1][15]

Everywhere Federal

  • Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
  • How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[16]
  • Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
  • A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
For workers

Think your tips were handled wrong in Ohio?

Workers in Ohio can file a tip or wage claim with the Ohio Department of Commerce, Bureau of Wage and Hour Administration (614-644-2239). Filing is free, and this page can't settle a dispute; the state can.[1]

Ohio Department of Commerce, Bureau of Wage and Hour Administration
Phone
614-644-2239[1]
Website
com.ohio.gov

Retaliation: Ohio's constitution bars firing, discrimination or retaliation for using minimum wage rights or helping others. Federal protections also apply.[6]

Penalties: Back wages plus twice that again, costs and fees. Retaliation: at least $150 a day. Late pay: 6% or $200, whichever is more.[6][12]

Can they take this out of my tips?

  • Walkouts and dine-and-dashNot allowedEmployers can't take tips. Ordinary authorized wage deductions are separate and can't push pay below the wage floor.[3]
  • BreakageNot allowedEmployers can't take tips. Ordinary authorized wage deductions are separate and can't push pay below the wage floor.[3]
  • Register shortagesNot allowedEmployers can't take tips. Ordinary authorized wage deductions are separate and can't push pay below the wage floor.[3]
  • UniformsNot allowedEmployers can't take tips. Ordinary authorized wage deductions are separate and can't push pay below the wage floor.[3]
  • Card processing feesAllowedOnly the federal actual-fee exception, and required wages still have to be paid.[3]
  • A manager's shareNot allowedFederal covered employers cannot retain employees’ tips.[3]

11Law changes

What changed in Ohio tip law, and what's coming

The next statewide increase in Ohio is not confirmed yet. Most recent change: The Paystub Protection Act requires itemized pay statements each payday. It doesn't add a tip-specific line ().

  1. ChangedThe Paystub Protection Act requires itemized pay statements each payday. It doesn't add a tip-specific line.[15]

Bills and ballot measures

Nothing pending as of .

Key statutes

  • Ohio Constitution, Article II, Section 34a
  • ORC 4111.02, .03, .14
  • ORC 4113.14–15

12FAQ

Ohio tip law questions

Plain answers to the 8 questions restaurant owners and staff ask most about Ohio tip law, each linked to its source.

What is Ohio's tipped minimum wage?

$5.50 an hour plus tips in 2026, for employers above the small-employer line. Cash plus tips has to reach $11.00.[1][2]

What changes on January 1, 2027?

The minimum rises to $11.40 and tipped cash to $5.70. The small-employer line isn't settled: the poster says $419,000, an agency announcement $420,000.[9]

Do small employers pay the same wage?

No. The 2026 poster says employers grossing less than $405,000 can pay the federal $7.25. A federal tip credit, down to $2.13 cash, works only if every federal condition is met.[1][3]

What about workers under 16?

They're owed at least the federal $7.25, not the higher state rate.[1]

Can Ohio cities set their own minimum wage?

No. State law bars cities and other local governments from setting a different minimum wage.[4]

Can card fees come out of tips in Ohio?

Only the tip's share of the actual card fee, under federal rules, and required wages still have to be paid. No separate Ohio rule was found.[3]

How long do wage records have to be kept?

At least three years after the worker's last day, under the Ohio constitution.[4][6]

Are pay stubs required in Ohio?

Yes. Since April 9, 2025, employers give a written or electronic statement each payday showing earnings, additions and deductions.[15]

13Compare

How Ohio compares with nearby states

Ohio borders Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. Michigan pays a higher minimum wage than Ohio's $11.00. Running locations on both sides of a line? Each one follows its own state's rules.

Compare all states in one table

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 Ohio setup.

14Sources

Sources for Ohio tip laws

Every figure on this page links to one of these 16 sources: 9 for Ohio and 7 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.

  1. 12026 Ohio Minimum Wage PosterOhio Department of Commerce · Official source · Page updated · Checked Pinpoint: Non-tipped and tipped rates, p. 1; Small employer provision, p. 1; Federal minimum, p. 1dam.assets.ohio.gov/image/upload/com.ohio.gov/DICO/WageAndHour/2026_Minumum_Wage_Poster.pdf
    What the source says

    “A Minimum Wage of $11.00 per hour”

    ““Employers” who gross less than $405,000 shall pay their employees no less than the current federal minimum wage rate.”

    ““Current Federal Minimum Wage” is $7.25 per hour.”

  2. 2State Tipped Minimum Wage TableU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Ohio large employer rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
    What the source says

    “Ohio 7 Employers with annual gross receipts of $405,000 or more $11.00 $5.50 $5.50 More than $30”

  3. 3Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Overtime Problems; Tip pooling; Traditional tip-pool actual dutieswww.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.”

    “The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”

    “An employer that takes a tip credit can require tipped employees to contribute tips only to a tip pool which is limited to employees in occupations in which they customarily and regularly receive tips,”

  4. 4Ohio Revised Code 4111Ohio Legislative Service Commission · Official source · Checked Pinpoint: 4111.02; 4111.03(A)codes.ohio.gov/ohio-revised-code/chapter-4111
    What the source says

    “No political subdivision shall establish a minimum wage rate different from the wage rate required under this section.”

    “one and one-half times the employee's wage rate for hours worked in excess of forty hours in one workweek”

    “"Wage" includes an employee's commissions of which the employee's employer keeps a record, but does not include gratuities,”

  5. 5What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: definition, paragraph 1; paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
    What the source says

    “A payroll card is a prepaid card arranged by an employer for the purpose of paying its employees’ wages or salary.”

    “Your employer can’t require you to receive your wages on a payroll card.”

    “Your employer has to offer you at least one alternative to a payroll card.”

  6. 6Ohio Constitution Article II, Section 34aOhio Legislative Service Commission · Official source · Page updated · Checked Pinpoint: Art II 34a tip allowance; Art II 34a complaint; Art II 34a damagescodes.ohio.gov/ohio-constitution/section-2.34a
    What the source says

    “An employer may pay an employee less than, but not less than half, the minimum wage rate required by this section”

    “An employee, person acting on behalf of one or more employees and/or any other interested party may file a complaint with the state”

    “Damages shall be calculated as an additional two times the amount of the back wages”

  7. 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 ).”

  8. 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).”

  9. 92027 Ohio Minimum Wage PosterOhio Department of Commerce · Official source · Page updated · Checked Pinpoint: 2027 rates, p. 1; 2027 small employer, p. 1; 2027 tipped, p. 1dam.assets.ohio.gov/image/upload/com.ohio.gov/DICO/WageAndHour/2027_Minumum_Wage_Poster.pdf
    What the source says

    “A Minimum Wage of $11.40 per hour”

    ““Employers” who gross less than $419,000”

    “A Minimum Wage of $5.70 per hour PLUS TIPS”

  10. 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.”

  11. 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”

  12. 12Ohio Revised Code 4113.15Ohio Legislative Service Commission · Official source · Page updated · Checked Pinpoint: 4113.15(A); 4113.15(A), ordinary schedule; 4113.15(B)codes.ohio.gov/ohio-revised-code/section-4113.15
    What the source says

    “on or before the first day of each month, pay all its employees the wages earned by them during the first half of the preceding month”

    “Every employer doing business in this state shall, on or before the first day of each month, pay all its employees the wages earned by them during the first half of the preceding month”

    “six per cent of the amount of the claim still unpaid and not in contest or disputed or two hundred dollars, whichever is greater.”

  13. 13Payroll Card Choice and DisclosuresConsumer Financial Protection Bureau · Official source · Checked Pinpoint: Federal disclosures; Federal payroll-card choicewww.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.”

    “Your employer can’t require you to receive your wages on a payroll card.”

  14. 14Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
    What the source says

    “However, the FLSA does not require an employer to provide employees pay stubs.”

  15. 15Ohio Revised Code 4113.14 Pay StubsOhio Legislative Service Commission · Official source · Page updated · Checked Pinpoint: 4113.14(B)(6); 4113.14(B)codes.ohio.gov/ohio-revised-code/section-4113.14
    What the source says

    “A listing of the amount and purpose of each addition to or deduction from the wages paid to the employee during the pay period;”

    “a written or electronic statement or access to a statement of the employee's earnings and deductions for each pay period”

    “April 9, 2025”

  16. 16Fact 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. 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. 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. 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. 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

  1. 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.