Rhode Island tip laws (2026)
Rhode Island's minimum wage is $16.00 an hour in 2026, and tipped workers can be paid as little as $3.89 cash. That leaves a $12.11 tip credit, and the employer covers any shortfall. The minimum rises to $17.00 on January 1, 2027.
Rhode Island at a glance
Tip credit allowedRhode Island: $16.00 an hour minimum wage. Tipped staff can be paid $3.89 cash, with up to $12.11 counted from tips.
| State minimum wage | $16.00/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $3.89 | Plus up to $12.11 in tips = $16.00.[1] |
| Max tip credit | $12.11 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[2] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[3] |
| Card tip payout | Card tips are due by the regular payday, even if the card company hasn't paid the employer yet.[3] | |
| Local minimum wages | None | State law blocks local rates.[4] |
Rates verified against the Rhode Island Department of Labor and Training 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 Rhode Island?
In Rhode Island you can take a tip credit of up to $12.11 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.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $3.89 cash and count up to $12.11 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[2] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| 04 | Include cooks and dishwashers? | Depends | Cooks and dishwashers can join only if paid the full minimum with no tip credit. Overtime-exempt staff can't join.[2] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't share in the pool. Rhode Island also keeps overtime-exempt staff out of full-wage pools that include kitchen workers.[6][2] |
| 06 | Let an owner keep any of the tips? | No | The employer can't keep workers' tips or set things up so tips become the employer's money.[2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employer can require pool contributions but has to tell workers the amount. Only eligible workers get shares.[2] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the card company's actual percentage on the tip, with notice to the worker, and never below minimum wage.[3] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday, even if the card company hasn't paid the employer yet.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[7][2][3] |
| 11 | Keep a mandatory service charge for the house? | Yes | Yes, by default.[8] |
| 12 | Pay tips on a payroll card? | Depends | Needs worker sign-off, federal card protections and free withdrawals. Offer another way to get paid too.[9] |
03State vs federal
Rhode Island vs federal law
Rhode Island sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $16.00 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Rhode Island | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[6] | Rhode Island$16.00[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[6] | Rhode Island$3.89[1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[6] | Rhode Island$12.11[1] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[6] | Rhode IslandMore than $30 in tips per month.[10] | State rule |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[6] | Rhode IslandManagers and supervisors can't share in the pool. Rhode Island also keeps overtime-exempt staff out of full-wage pools that include kitchen workers.[6][2] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[6] | Rhode IslandCooks and dishwashers can join only if paid the full minimum with no tip credit. Overtime-exempt staff can't join.[2] | State rule |
| Card fees from tipsSame as federal | 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.[6] | Rhode IslandTip's share of the fee only[3] | Same as federal |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[6] | Rhode IslandCard tips are due by the regular payday, even if the card company hasn't paid the employer yet.[3] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[6] | Rhode IslandThe business's money[8] | 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.[6] | Rhode IslandTime and a half after 40 hours, on the full regular rate. The tip credit stays the same, so overtime can't be figured off $3.89.[6][11] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Rhode Island fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Rhode Island
In Rhode Island employers can pay tipped staff $3.89 an hour and count up to $12.11 in tips toward the $16.00 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Rhode Island
A busy week with $363.30 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
Other rates
| Rate | Hourly |
|---|---|
| Youth or training Workers aged 14 and 15No more than 24 hours weekly; over 24 hours requires the full applicable rate for all hours.[1] | $12.00 |
Scheduled increases
- Now, since $16.00
- $17.00General statewide minimum wage. P.L. 2025 chapters 222/223; RIGL 28-12-3(q)[5]
06Tip pool
Who can be in the tip pool in Rhode Island
Rhode Island 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 | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Bartender | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Busser | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Food runner | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Host | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Barback | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Expo | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Back of house | ||
| Cook | Depends | Allowed when paid the full minimum with no tip credit. Overtime-exempt staff stay out.[2] |
| Dishwasher | Depends | Allowed when paid the full minimum with no tip credit. Overtime-exempt staff stay out.[2] |
| Leadership | ||
| Shift lead | Depends | Has to customarily get tips. Actual duties decide eligibility and whether the manager ban applies.[2] |
| Manager or supervisor | Not allowed | Out under the federal duties test. State law also bars overtime-exempt staff from pools that include kitchen workers.[2] |
| Owner | Not allowed | Employer cannot take any employee tips.[2] |
- Managers and supervisors
- Managers and supervisors can't share in the pool. Rhode Island also keeps overtime-exempt staff out of full-wage pools that include kitchen workers.[6][2]
- Owners
- The employer can't keep workers' tips or set things up so tips become the employer's money.[2]
- Back of house
- Cooks and dishwashers can join only if paid the full minimum with no tip credit. Overtime-exempt staff can't join.[2]
- Who sets the percentages
- The employer can require pool contributions but has to tell workers the amount. Only eligible workers get shares.[2]
- 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.[6][2]
- Pooling allowed
- Yes.[2]
07Put it to work
Setting up a tip pool in Rhode Island
Under Rhode Island rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. Out under the federal duties test. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Rhode Island'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 Rhode Island
In Rhode Island a mandatory service charge belongs to the business by default. A tip is the guest's choice and belongs to staff.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | The business, by default.[8] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[6] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[14][15] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[8] |
- 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 Rhode Island say?Business owns it by defaultThe business, by default.[8]
- Step 3Check the cityNo city service charge rules on file for Rhode Island.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[8]
- Large-party auto gratuities
- An automatic, required charge is a service charge, not a tip. Rhode Island calls it a compulsory employer fee.[14][15][10]
Local service charge rules
No local service charge rules on file for Rhode Island.
More on the difference: service charge vs tip.
09Card tips
Card tips in Rhode Island: fees and payout timing
In Rhode Island only the tip's share of the card processing fee can come out of a card tip. Payout deadline: card tips are due by the regular payday, even if the card company hasn't paid the employer yet.
Only the card company's actual percentage on the tip, with notice to the worker, and never below minimum wage.[3]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineRhode Island rule Card tips are due by the regular payday, even if the card company hasn't paid the employer yet.[3]
- Last dayFinal pay Usually due the next regular payday. If the business closes, merges, sells or leaves the state, pay is due within 24 hours.[16]
Paydays: Hourly restaurant pay is usually weekly. Payday falls within nine days after the pay period ends.[17][18]
Paying tips on a payroll card
- Allowed?DependsNeeds worker sign-off, federal card protections and free withdrawals.[9]
- Worker consent needed?Yes
- Free way to get the money?State ruleAt least one free withdrawal of full net pay each pay period, or weekly if paid more often. Balance checks are free and unlimited.[9]
- Must you offer another option?YesFederal rules bar forcing an account at one bank. State law also needs the worker's sign-off.[19]
- Holding cash tipsState rulePooled cash tips are due by the regular payday, or once the amounts are known. The employer can't hold them for its own use.[6]
- 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.[20][21]
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 Rhode Island
Keep each tipped worker's tips and hours on record, shift by shift. Rhode Island: at least three years after each record entry.
Rhode Island State
- Tip records Keep accurate hours and wages each pay period. Since January 1, 2026, keep a signed copy of each written hiring wage notice.[22]
- How long to keep them At least three years after each record entry.[22]
- Tip credit notice Required. Give the federal tip-credit notice before taking the credit. Rhode Island also requires notice of required pool amounts and card-fee deductions.[6]
- Posters and forms Rhode Island minimum-wage summary and applicable wage orders; Written hiring wage notice with employee acknowledgment, effective January 1, 2026.[23][22]
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.[6]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[24]
- 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.[6]
- 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 Rhode Island?
Workers in Rhode Island can file a tip or wage claim with the Rhode Island Department of Labor and Training (401-462-8550). Filing is free, and this page can't settle a dispute; the state can.[1]
- Phone
- 401-462-8550[25]
- Website
- dlt.ri.gov
Retaliation: Employers cannot retaliate for wage complaints, wage proceedings, testimony or wage-board service.[26]
Penalties: Unpaid wages, damages, up to double in liquidated damages, plus fees and costs. Criminal penalties and triple damages for bad deductions can also apply.[27][7][28]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedBanned. No wage deductions for breakage, shortages or losses, even if the worker agrees.[7]
- BreakageNot allowedBanned. No wage deductions for breakage, shortages or losses, even if the worker agrees.[7]
- Register shortagesNot allowedBanned. No wage deductions for breakage, shortages or losses, even if the worker agrees.[7]
- UniformsNot allowedThe employer can't take tips. A legal wage deduction doesn't make taking tips legal.[2]
- Card processing feesDependsOnly the actual card fee on the tip, with notice, and never below minimum wage.[3]
- A manager's shareNot allowedThe employer can't take tips. A legal wage deduction doesn't make taking tips legal.[2]
11Law changes
What changed in Rhode Island tip law, and what's coming
Next scheduled change: the Rhode Island minimum wage goes to $17.00 on . Most recent change: The statewide minimum increased to $16; the cash tipped floor remains $3.89 ().
- ComingMinimum wage goes to $17.00 (General statewide minimum wage).[5]
- ChangedThe statewide minimum increased to $16; the cash tipped floor remains $3.89.[5]
- ChangedEmployers must give written hiring wage notices and retain signed employee acknowledgments.[22]
- ChangedEnacted schedule sets the general minimum at $17 from January 1, 2027.[5]
Key statutes
- R.I. Gen. Laws 28-12-3
- R.I. Gen. Laws 28-12-5
- R.I. Gen. Laws 28-12-25
- R.I. Gen. Laws 28-14.1-2
- R.I. Gen. Laws 28-14.1-3
- R.I. Gen. Laws 28-14.1-4
- R.I. Gen. Laws 28-14-10.1
- R.I. Gen. Laws 28-14-12
- R.I. Gen. Laws 28-14-19.2
Not covered here? Ask the Rhode Island Department of Labor and Training at 401-462-8550 or on dlt.ri.gov.
12FAQ
Rhode Island tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Rhode Island tip law, each linked to its source.
What is Rhode Island's tipped minimum wage?
$3.89 an hour in cash. Cash plus tips has to reach $16.00 an hour in 2026, and the employer covers any gap.[1]
What changes in 2027?
The state minimum wage rises to $17.00 on January 1, 2027.[5]
Can a restaurant require tip pooling?
Yes. The employer has to tell workers the required contribution amount and can't keep any pool money.[2]
Can cooks and dishwashers share tips?
Yes, if the employer pays them the full minimum wage and takes no tip credit. Overtime-exempt staff stay out.[2]
Can card fees come out of tips?
Only the card company's actual percentage on the tip, with notice to the worker. It can't push pay below minimum wage.[3]
When are credit card tips due?
By the regular payday. The employer can't wait for the card company to pay first.[3]
Is a service charge a tip?
No. A required service charge belongs to the employer. Any part paid to staff counts as wages.[8]
Can a worker be forced onto a payroll card?
No. The worker has to authorize it, and the card has to give free access to net pay and free balance checks.[9]
13Compare
How Rhode Island compares with nearby states
Rhode Island borders Connecticut, Massachusetts and New York. Connecticut pays a higher minimum wage than Rhode Island's $16.00. 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 Rhode Island: Tip credit, cash wage above federal.
- Maryland tip laws$15.00 min wage $3.63 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Idaho tip laws$7.25 min wage $3.35 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- West Virginia tip laws$8.75 min wage $2.62 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Ohio tip laws$11.00 min wage $5.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Vermont tip laws$14.42 min wage $7.21 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
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 Rhode Island setup.
14Sources
Sources for Rhode Island tip laws
Every figure on this page links to one of these 28 sources: 24 for Rhode Island and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Minimum WageRhode Island Department of Labor and Training · Official source · Page updated · Checked Pinpoint: Tipped Workers; 14- and 15-Year-Old Workersdlt.ri.gov/regulation-and-safety/labor-standards/minimum-wage
What the source says
“Minimum cash wage: $3.89 per hour, with a maximum tip credit of $12.11 per hour, which equals the $16.00 minimum wage in 2026.”
“Total pay including cash and tips must always be at least $16 per hour”
“Work 24 hours or less per week: 75 percent of minimum wage, which is $12 per hour in 2026”
- 2Rhode Island General Laws 28-14.1-2Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14.1-2(b)(1); RIGL 28-14.1-2(b); RIGL 28-14.1-2webserver.rilegislature.gov/Statutes/TITLE28/28-14.1/28-14.1-2.htm
What the source says
“An employer must notify its employees of any required tip pool contribution amount, may only take a tip credit for the amount of tips each employee ultimately receives,”
“The requirement that an employee must retain all tips does not preclude a valid tip pooling or sharing arrangement among employees who customarily and regularly receive tips.”
“An employer that pays the full minimum wage and takes no tip credit may allow employees who are not tipped employees to participate in the tip pool.”
- 3Rhode Island General Laws 28-14.1-4Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14.1-4webserver.rilegislature.gov/Statutes/TITLE28/28-14.1/28-14.1-4.htm
What the source says
“the employer may deduct that percentage from the employee’s tips, provided that the employer notifies the employee of the deduction.”
“This charge on the tip may not reduce the employee’s wage below the required minimum wage.”
“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.”
- 4Rhode Island General Laws 28-12-25Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-12-25webserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-25.htm
What the source says
“No municipality shall establish, mandate, or otherwise require an employer to pay a minimum wage to its employees, other than the state or federal mandated minimum wage,”
“Title 28 Labor and Labor Relations Chapter 12 Minimum Wages R.I. Gen.”
- 5Rhode Island General Laws 28-12-3Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-12-3; RIGL 28-12-3(q); RIGL 28-12-3 historywebserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-3.htm
What the source says
“Commencing January 1, 2026, the minimum wage is sixteen dollars ($16.00) per hour.”
“Commencing January 1, 2027, the minimum wage is seventeen dollars ($17.00) per hour.”
“P.L. 2025, ch. 222, § 1, effective June 24, 2025; P.L. 2025, ch. 223, § 1, effective June 24, 2025.”
- 6Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Typical Problems, Overtime Problems, item 1; Employers, Including Managers and Supervisors, paragraph 3; Distributing Tips from Tip Pools, paragraph 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“When an employer takes a tip credit, overtime must be calculated based on the full minimum wage, which is currently $7.25 an hour, not the lower direct (or cash) wage payment.”
“A manager or supervisor may keep only those tips that they receive directly from a customer for the service they directly and solely provide.”
“When an employer collects tips to administer a tip pool, the employer must fully distribute any collected tips at the regular payday for the workweek, or, for pay periods of more than one workweek, at the regular payday for the period in which the particular workweek ends.”
- 7Rhode Island General Laws 28-14-3.2Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-14-3.2; RIGL 28-14-3.2(b)webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-3.2.htm
What the source says
“However, a deduction shall never be authorized by an employee or deducted by an employer from an employee’s wage for: (1) Spoilage or breakage; (2) Shortages or losses;”
“shall be subject to treble damages, payable to the employee, of the amount not authorized to be deducted or withheld.”
- 8Rhode Island General Laws 28-14.1-3Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14.1-3webserver.rilegislature.gov/Statutes/TITLE28/28-14.1/28-14.1-3.htm
What the source says
“Sums distributed to employees from service charges cannot be counted as tips received, but may be used to satisfy the employer’s minimum wage and overtime requirements”
“Service charges are part of the employer’s gross receipts.”
“Title 28 Labor and Labor Relations Chapter 14.1 Tip Protection R.I. Gen.”
- 9Rhode Island General Laws 28-14-10.1Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-14-10.1(a); RIGL 28-14-10.1(f)(1)webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-10.1.htm
What the source says
“upon written or electronic request, an employee of a state agency or any other employer may authorize a disbursing officer”
“the employee must be able to make at least one withdrawal from the payroll card account in each pay period without charge for any amount up to and including the full amount of the employee’s net wages for the pay period.”
“Title 28 Labor and Labor Relations Chapter 14 Payment of Wages R.I.”
- 10Rhode Island General Laws 28-14.1-1Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14.1-1; RIGL 28-14.1-1(2)webserver.rilegislature.gov/Statutes/TITLE28/28-14.1/28-14.1-1.htm
What the source says
“customarily and regularly receives more than thirty dollars ($30.00) a month in tips.”
““Service charge” means a compulsory fee charged by an employer to a patron.”
- 11Rhode Island General Laws 28-12-4.1Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-12-4.1(a)webserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-4.1.htm
What the source says
“at a rate of one and one-half (1½) times the regular rate at which he or she is employed for all hours worked in excess of forty (40) hours per week.”
- 12Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked www.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.”
- 13Field Assistance Bulletin 2026-1U.S. Department of Labor · Official source · Page updated · Checked www.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.”
- 14Tip 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.”
- 15Revenue 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”
- 16Rhode Island General Laws 28-14-4Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14-4; RIGL 28-14-4(c)webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-4.htm
What the source says
“the unpaid wages or compensation of the employee shall become due on the next regular payday and payable at the usual place of payment.”
“all wages become immediately due and payable within twenty-four (24) hours of the time of separation at the usual place of payment.”
- 17Rhode Island General Laws 28-14-2.2Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14-2.2webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-2.2.htm
What the source says
“every employee other than employees of the state and its political subdivisions and of religious, literary, or charitable corporations shall be paid weekly all due wages from his or her employer,”
- 18Rhode Island General Laws 28-14-2Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-14-2webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-2.htm
What the source says
“Each scheduled payday shall fall within nine (9) days of the end of the payroll period for which wages are computed”
- 19What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“Your employer has to offer you at least one alternative to a payroll card.”
- 20Questions 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.”
- 21Rhode Island General Laws 28-14-2.1Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14-2.1webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-2.1.htm
What the source says
“A record of all deductions made from that employee’s gross earnings during the pay period together with an explanation of the basis or reason for the deductions;”
- 22Rhode Island General Laws 28-14-12Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14-12; RIGL 28-14-12(b), effective 2026 textwebserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-12_28-14-12.htm
What the source says
“At the start of employment, an employer shall provide each of its employees, a written notice, in English, containing the following information:”
“The employer shall keep the records on file for at least three (3) years after the entry of the record.”
“The employer shall keep a copy of the notice provided pursuant to the provisions of subsection (a) of this section, signed by each employee, thereby acknowledging their receipt of the notice.”
- 23Rhode Island General Laws 28-12-11Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-12-11webserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-11.htm
What the source says
“posted in a conspicuous and accessible place in or about the premises where any person subject to them is employed.”
- 24Fact 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,”
- 25Rhode Island Department of Labor and Training Contact UsRhode Island Department of Labor and Training · Official source · Page updated · Checked dlt.ri.gov/about-us/contact-us
What the source says
“(401) 462-8550”
- 26Rhode Island General Laws 28-12-16Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-12-16webserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-16.htm
What the source says
“Any employer who or that discharges or in any other manner discriminates against any employee because the employee has made any complaint to his or her employer,”
- 27Rhode Island General Laws 28-14-19.2Rhode Island General Assembly · Official source · Checked Pinpoint: R.I. Gen. Laws 28-14-19.2webserver.rilegislature.gov/Statutes/TITLE28/28-14/28-14-19.2.htm
What the source says
“liquidated damages in an amount up to two (2) times the amount of unpaid wages and/or benefits owed,”
“Title 28 Labor and Labor Relations Chapter 14 Payment of Wages R.I.”
- 28Rhode Island General Laws 28-12-17Rhode Island General Assembly · Official source · Checked Pinpoint: RIGL 28-12-17webserver.rilegislature.gov/Statutes/TITLE28/28-12/28-12-17.htm
What the source says
“be fined not less than one hundred dollars ($100) nor more than five hundred dollars ($500)”
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.