South Carolina tip laws (2026)
South Carolina has no state minimum wage, so federal law sets the floor for covered restaurants: $7.25 an hour, with as little as $2.13 in cash if tips cover the rest. Cities can't set their own rate. Final pay is due within 48 hours or by the next payday, and never later than 30 days.
South Carolina at a glance
Federal tip creditSouth Carolina: $7.25 an hour minimum wage. Tipped staff can be paid $2.13 cash, with up to $5.12 counted from tips.
| State minimum wage | $7.25/hr | The federal rate applies to most restaurants. See Wages.[1] |
|---|---|---|
| Tipped cash wage | $2.13 | Plus up to $5.12 in tips = $7.25.[1] |
| Max tip credit | $5.12 | Federal rule applies.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[1] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[1] |
| Card tip payout | Card tips are due by regular payday, without waiting on the processor. | Pool shares go out by payday, or soon after if totals aren't known.[1] |
| Local minimum wages | None | State law blocks local rates.[2] |
Rates verified against the U.S. Department of Labor 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 South Carolina?
In South Carolina you can take the federal tip credit, 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 (federal) | Federal rule: pay $2.13 cash and count up to $5.12 in tips.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[1] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers can share. Food runner and host: fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| 04 | Include cooks and dishwashers? | Depends | Cooks and dishwashers can join a pool only if everyone gets the full federal minimum in cash, with no tip credit. Managers stay out.[1] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[1] |
| 06 | Let an owner keep any of the tips? | No | Owners with a real 20% stake who help run the place count as managers here. No employer can keep employees' tips.[1] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No federal cap on a valid mandatory pool. Eligibility, notice and minimum wage rules still apply.[1] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the tip's share of the actual card fee can come out, and never enough to drop pay below minimum wage.[1] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by regular payday, without waiting on the processor. Pool shares go out by payday, or soon after if totals aren't known.[1] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[1] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | Required service charges aren't tips under federal law. What reaches staff counts as wages, including for overtime. Contracts or promises can add duties.[1] |
| 12 | Pay tips on a payroll card? | Depends | State deposit rules and federal payment-choice rules apply. The statute doesn't expressly approve every payroll card setup. Offer another way to get paid too.[3][4] |
03State vs federal
South Carolina vs federal law
South Carolina follows the federal baseline on the rules below: $7.25 minimum wage, $2.13 tipped cash wage and up to $5.12 in tip credit.
| Rule | Federal (FLSA) | South Carolina | Comparison |
|---|---|---|---|
| Minimum wageFederal applies | Federal$7.25[1] | South Carolina$7.25[5] | Federal applies |
| Tipped cash wageFederal applies | Federal$2.13[1] | South Carolina$2.13[1][5] | Federal applies |
| Max tip creditFederal applies | Federal$5.12[1] | South Carolina$5.12[1] | Federal applies |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[1] | South CarolinaMore than $30 a month in tips, customarily and regularly received in the occupation.[1] | 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.[1] | South CarolinaManagers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[1] | 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.[1] | South CarolinaCooks and dishwashers can join a pool only if everyone gets the full federal minimum in cash, with no tip credit. Managers stay out.[1] | 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.[1] | South CarolinaTip's share of the fee only[1] | 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.[1] | South CarolinaCard tips are due by regular payday, without waiting on the processor. Pool shares go out by payday, or soon after if totals aren't known.[1] | 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.[1] | South CarolinaRequired service charges aren't tips under federal law. What reaches staff counts as wages, including for overtime. Contracts or promises can add duties.[1] | 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.[1] | South CarolinaOvertime is 1.5 times the regular rate after 40 hours a week. Figure it from the full rate, not $2.13. The credit doesn't grow.[1][5] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how South Carolina fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in South Carolina
South Carolina has no tipped wage of its own, so the federal rule applies: $2.13 cash, up to $5.12 from tips, $7.25 in total.[5]
One server, one slow 30-hour week in South Carolina
A busy week with $153.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
Other rates
| Rate | Hourly |
|---|---|
| Tier FLSA covered nonexempt employeesCovered nonexempt employees; higher state, local or industry rates may apply. Since .[1][8] | $7.25 |
| Youth or training Federal youth opportunity wageUnder 20, first 90 consecutive calendar days after initial employment; nondisplacement limits apply.[9] | $4.25 |
Scheduled increases
No statewide increase with a published amount is on file as of .
06Tip pool
Who can be in the tip pool in South Carolina
South Carolina 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 | Allowed | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Bartender | Allowed | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Busser | Allowed | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Food runner | Depends | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Host | Depends | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Barback | Depends | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Expo | Depends | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Back of house | ||
| Cook | Depends | Only in a pool where everyone gets the full federal minimum in cash and no tip credit is taken. No manager shares.[1] |
| Dishwasher | Depends | Only in a pool where everyone gets the full federal minimum in cash and no tip credit is taken. No manager shares.[1] |
| Leadership | ||
| Shift lead | Depends | Fine in a pool for customarily tipped jobs. Non-tipped roles need the full cash minimum with no tip credit. Managers are out.[1] |
| Manager or supervisor | Not allowed | No share of employee pool tips. Real duties and ownership decide who counts, not the job title.[1] |
| Owner | Not allowed | No share of employee pool tips. Real duties and ownership decide who counts, not the job title.[1] |
- Managers and supervisors
- Managers and supervisors who meet the duties test can't take employee tips or pool shares. They keep only tips from service they alone provide.[1]
- Owners
- Owners with a real 20% stake who help run the place count as managers here. No employer can keep employees' tips.[1]
- Back of house
- Cooks and dishwashers can join a pool only if everyone gets the full federal minimum in cash, with no tip credit. Managers stay out.[1]
- Who sets the percentages
- The employer can set a valid mandatory pool. In a traditional pool, tipped workers have to be told the required contribution amounts.[1]
- Cap on what a pool can take
- No federal cap on a valid mandatory pool. Eligibility, notice and minimum wage rules still apply.[1]
- Pooling allowed
- Yes. Federal rules cover restaurant pools. No separate South Carolina pooling rule was found.[1]
07Put it to work
Setting up a tip pool in South Carolina
Under South Carolina 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. No share of employee pool tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet South Carolina'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 South Carolina
South Carolina 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 | Required service charges aren't tips under federal law. What reaches staff counts as wages, including for overtime. Contracts or promises can add duties.[1] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[1] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[10][11] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[3] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does South Carolina say?Federal ruleRequired service charges aren't tips under federal law. What reaches staff counts as wages, including for overtime. Contracts or promises can add duties.[1]
- Step 3Check the cityNo city service charge rules on file for South Carolina.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[3]
- Large-party auto gratuities
- A mandatory auto-gratuity is a service charge for tax purposes, even if staff get it. Calling it a tip doesn't make it one.[10][11]
Local service charge rules
No local service charge rules on file for South Carolina.
More on the difference: service charge vs tip.
09Card tips
Card tips in South Carolina: fees and payout timing
In South Carolina only the tip's share of the card processing fee can come out of a card tip. Payout deadline: card tips are due by regular payday, without waiting on the processor. Pool shares go out by payday, or soon after if totals aren't known.
Only the tip's share of the actual card fee can come out, and never enough to drop pay below minimum wage.[1]
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.
- DeadlineSouth Carolina rule Card tips are due by regular payday, without waiting on the processor. Pool shares go out by payday, or soon after if totals aren't known.[1]
- Last dayFinal pay For quits or dismissals, pay within 48 hours of separation or on the next regular payday, no later than 30 days.[3]
Paydays: Pay all agreed wages at the set time and place. State law sets no universal weekly or twice-monthly schedule.[3]
Paying tips on a payroll card
- Allowed?DependsState deposit rules and federal payment-choice rules apply. The statute doesn't expressly approve every payroll card setup.[3]
- Worker consent needed?YesFederal rules bar requiring the employer's chosen card. No separate state card-consent rule was found.[4]
- Free way to get the money?State ruleA wage-deposit setup has to allow at least one free withdrawal per deposit. Federal card protections also apply.[3]
- Must you offer another option?Yes
- Holding cash tipsState ruleThe employer can collect cash tips to run a valid pool, then pay them out by regular payday. Nothing broader is allowed.[1]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[12][3]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in South Carolina
Keep each tipped worker's tips and hours on record, shift by shift. South Carolina: state covered wage records: three years.
South Carolina State
- Tip records Keep names, addresses, pay and deductions each payday, plus federal tip records. Private-home domestic work and employers always under five workers skip the state part.[3]
- How long to keep them State covered wage records: three years. Federal payroll records: three years; underlying wage-computation records: two years.[3][13]
- Tip credit notice Required. Tell workers first: cash wage, credit amount, credit capped at actual tips, tips stay theirs outside a valid pool, and any pool contribution amounts.[1]
- Posters and forms FLSA minimum wage poster; Written hiring wage terms or conspicuous posting, for employers subject to section 41-10-30; South Carolina workplace-law notice.[13][3][14]
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.[1]
- 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.[1]
- 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.
State paperwork
The state rules South Carolina does have
South Carolina skips a minimum wage but still has a payment-of-wages law. It covers hiring notices, change notices and free withdrawals, with a carve-out for very small employers.[3]
- 01
Hiring terms
Employers covered by the notice rule give written wage terms at hire or post them where workers can see them.[3]
- 02
Seven days' notice
Changes to pay, payday or other terms need seven calendar days' written notice. Raises are the exception.[3]
- 03
One free withdrawal
Wages paid by deposit come with at least one withdrawal per deposit that has no service charge.[3]
Think your tips were handled wrong in South Carolina?
Workers in South Carolina can file a tip or wage claim with the South Carolina Department of Labor, Licensing and Regulation, Office of Wages and Child Labor (803-896-7756). Filing is free, and this page can't settle a dispute; the state can.[15]
- Phone
- 803-896-7756[15]
- Website
- llr.sc.gov/wage
Retaliation: Federal law bars retaliation for wage complaints, oral or written, even where federal wage rules don't apply. Reinstatement, lost pay and damages may follow.[16]
Penalties: State wage claims can recover three times unpaid wages, plus costs and fees, within three years. Some violations carry fines up to $100.[3]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedEmployee tips cannot reimburse employer losses. Separate wage-deduction rules may also apply.[1]
- BreakageNot allowedEmployee tips cannot reimburse employer losses. Separate wage-deduction rules may also apply.[1]
- Register shortagesNot allowedEmployee tips cannot reimburse employer losses. Separate wage-deduction rules may also apply.[1]
- UniformsNot allowedEmployee tips cannot pay employer uniform costs. Separate wage-deduction rules may also apply.[1]
- Card processing feesAllowedOnly the tip's share of the actual card fee, and never enough to drop pay below required wages.[1]
- A manager's shareNot allowedEmployers, managers and supervisors cannot receive employee tip-pool shares.[1]
11Law changes
What changed in South Carolina tip law, and what's coming
No statewide increase with a published amount is on file for South Carolina as of .
No changes to South Carolina tip or wage rules on file for the last 24 months.
Key statutes
- 29 U.S.C. § 203(m)(2), (t)
- 29 CFR §§ 531.52, 531.54, 531.56(e), 531.60
- IRS Rev. Rul. 2012-18
- S.C. Code sections 41-10-10 through 41-10-110
- S.C. Code section 6-1-130
Not covered here? Ask the South Carolina Department of Labor, Licensing and Regulation, Office of Wages and Child Labor at 803-896-7756 or on llr.sc.gov/wage.
12FAQ
South Carolina tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about South Carolina tip law, each linked to its source.
What is the tipped minimum wage in South Carolina?
Can a restaurant require tip pooling?
Yes, under federal law. Workers get advance notice, only eligible roles share, and employers, managers and supervisors can't take a cut.[1]
Can cooks and dishwashers share tips?
Yes, in a pool where everyone gets the full $7.25 in cash and no tip credit is taken.[1]
Can card-processing fees come out of tips?
When is final pay due?
Within 48 hours or by the next regular payday, and never later than 30 days. Quit or fired, the rule is the same.[3]
Can an employer change pay or payday without warning?
No. Covered employers have to give seven calendar days' written notice before changing terms. Raises don't need the advance notice.[3]
Do wage deposits have to include a free withdrawal?
Yes. Each wage deposit has to come with at least one withdrawal that carries no service charge.[3]
13Compare
How South Carolina compares with nearby states
South Carolina borders Georgia, North Carolina and Virginia. Virginia pays a higher minimum wage than South Carolina'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 South Carolina: Federal rates apply.
- Alabama tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- Louisiana tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- Mississippi tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- Tennessee tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, and only the tip's share of card fees
- Wyoming tip laws$7.25 min wage Federal $2.13 cash wage Also runs on federal tip rules, 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 South Carolina setup.
14Sources
Sources for South Carolina tip laws
Every figure on this page links to one of these 17 sources: 13 for South Carolina and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“An employer must pay a tipped worker at least $2.13 per hour under the FLSA.”
“the federal minimum wage, which is currently $7.25 per hour.”
“The maximum tip credit that an employer can currently claim is $5.12 per hour: ($7.25 - $2.13 direct (or cash) wage = $5.12).”
- 2South Carolina Code, section 6-1-130: Local minimum wage authoritySouth Carolina Legislature · Official source · Checked Pinpoint: Section 6-1-130(B); Section 6-1-130(C); Section headingwww.scstatehouse.gov/code/t06c001.php
What the source says
“A political subdivision of this State may not establish, mandate, or otherwise require a minimum wage rate that exceeds the federal minimum wage rate”
“This section does not limit the authority of political subdivisions to establish wage rates in contracts to which they are a party.”
“SECTION 6-1-130. Political subdivisions; scope of authority to set minimum wage rates.”
- 3South Carolina Code, Title 41, Chapter 10: Payment of WagesSouth Carolina Legislature · Official source · Checked Pinpoint: Section 41-10-10(2); Section 41-10-40(D); Section 41-10-50www.scstatehouse.gov/code/t41c010.php
What the source says
“"Wages" means all amounts at which labor rendered is recompensed,”
“Every employer in the State shall pay all wages due at the time and place designated”
“the employer shall pay all wages due to the employee within forty-eight hours of the time of separation or the next regular payday which may not exceed thirty days.”
- 4What 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 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.”
- 5Employee and Employer Rights under State and Federal LawSouth Carolina Department of Labor, Licensing and Regulation · Official source · Checked Pinpoint: Minimum Wage/Overtime Payllr.sc.gov/wage/pdf/employee.pdf
What the source says
“There is no state law covering minimum wage or overtime pay.”
- 6Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; 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.”
“29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”
- 7Field Assistance Bulletin 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphswww.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.”
- 8History of Changes to the Minimum Wage Law, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: 2007 amendments paragraphwww.dol.gov/agencies/whd/minimum-wage/history
What the source says
“The 2007 amendments increased the minimum wage to $5.85 per hour effective July 24, 2007; $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.”
- 9Fact Sheet #32: Youth Minimum Wage - Fair Labor Standards ActU.S. Department of Labor · Official source · Checked Pinpoint: youth minimum wage discussionwww.dol.gov/agencies/whd/fact-sheets/32-minimum-wage-youth
What the source says
“$4.25 an hour to employees who are under 20 years of age during the first 90 consecutive calendar days after initial employment.”
- 10Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 11Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 12Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
What the source says
“However, the FLSA does not require an employer to provide employees pay stubs.”
- 13Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“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).”
“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,”
- 14South Carolina Code Title 41 Chapter 1, section 41-1-10 workplace-law noticeSouth Carolina Legislature · Official source · Checked Pinpoint: 41-1-10www.scstatehouse.gov/code/t41c001.php
What the source says
“Every employer shall keep posted in a conspicuous place a printed notice stating the provisions of the law relative to the employment of adult persons and children and the regulation of hours and working conditions.”
- 15Office of Wages and Child LaborSouth Carolina Department of Labor, Licensing and Regulation · Official source · Checked Pinpoint: Agency page heading; Contact Usllr.sc.gov/wage
What the source says
“South Carolina Office of Wages and Child Labor”
“Tel: (803) 896-7756”
- 16Fact Sheet # 77A: Prohibiting Retaliation Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: FS77A Coverage, Prohibitions, Remedieswww.dol.gov/agencies/whd/fact-sheets/77a-flsa-prohibiting-retaliation
What the source says
“the protection applies to all employees of an employer even in those instances in which the employee’s work and the employer are not covered by the FLSA.”
- 17Payment of Wages: How to File a Wage ComplaintSouth Carolina Department of Labor, Licensing and Regulation · Official source · Checked Pinpoint: How To File a Wage Complaintllr.sc.gov/wage/paymentofwages.aspx
What the source says
“How To File a Wage Complaint: Electronically: File a Wage or Child Labor Complaint online.”
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.