Utah tip laws (2026)
Utah matches federal law: $2.13 an hour in cash, up to a $5.12 tip credit, and $7.25 once tips are counted. Tip pools have to be in writing and handed to workers at hire or before they start. Cities can't set a higher minimum wage.
Utah at a glance
Tip credit allowedUtah: $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 | Statewide from .[1][2] |
|---|---|---|
| Tipped cash wage | $2.13 | Plus up to $5.12 in tips = $7.25.[1][2] |
| Max tip credit | $5.12 | Counted from tips.[2] |
| Tip pooling | Allowed | Mandatory pools allowed.[3][4] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[4] |
| Card tip payout | Tips count in the pay period they're earned. | Federal rules for card tips and pools paid by the regular payday also apply.[4][5] |
| Local minimum wages | None | State law blocks local rates.[3] |
Rates verified against the Utah Labor Commission, Utah Antidiscrimination and Labor Division 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 Utah?
In Utah you can take a tip credit of up to $5.12 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 $2.13 cash and count up to $5.12 in tips. Tips must cover the gap.[1][2] |
| 02 | Make staff join a tip pool? | Yes | Traditional pools can be mandatory. Non-tipped workers can join only under federal conditions, with no tip credit.[4][3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartenders and bussers can share. Food runner and host: traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5][3] |
| 04 | Include cooks and dishwashers? | Depends | A 2023 law allows pools with non-tipped workers if they follow federal rules: everyone gets full cash minimum wage and no tip credit.[3][5] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't take workers' pooled tips. They keep only tips for service they alone provide.[5] |
| 06 | Let an owner keep any of the tips? | No | An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[5] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No fixed percentage cap in Utah law or federal rules. Pool eligibility and the written-arrangement rule still apply.[3][4][5] |
| 08 | Take card processing fees out of tips? | Pro rata | Utah allows no more than the card company's percentage. Federal law limits it to the actual cost on the tip, without cutting required wages.[4][5] |
| 09 | Hold card tips until payday? | Deadline | Tips count in the pay period they're earned. Federal rules for card tips and pools paid by the regular payday also apply.[4][5] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[6][5][4] |
| 11 | Keep a mandatory service charge for the house? | Yes | Yes, by default.[4] |
| 12 | Pay tips on a payroll card? | Yes | Full wages must be available on payday, with free access and a deduction statement. Federal choice protections apply. Offer another way to get paid too.[7][8] |
03State vs federal
Utah vs federal law
Utah 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) | Utah | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[5] | Utah$7.25[1][2] | Same as federal |
| Tipped cash wageSame as federal | Federal$2.13[5] | Utah$2.13[1][2] | Same as federal |
| Max tip creditSame as federal | Federal$5.12[5] | Utah$5.12[2] | Same as federal |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[5] | UtahUtah: at least $30 a month in tips, received and reported to the employer. The federal test is more than $30.[4][1][5] | 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.[5] | UtahManagers and supervisors can't take workers' pooled tips. They keep only tips for service they alone provide.[5] | 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.[5] | UtahA 2023 law allows pools with non-tipped workers if they follow federal rules: everyone gets full cash minimum wage and no tip credit.[3][5] | 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.[5] | UtahTip's share of the fee only[4] | 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.[5] | UtahTips count in the pay period they're earned. Federal rules for card tips and pools paid by the regular payday also apply.[4][5] | 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.[5] | UtahThe business's money[4] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[5] | UtahUtah has no state overtime law. FLSA-covered workers get overtime after 40 hours a week, based on the regular rate.[1][5] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Utah fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Utah
In Utah employers can pay tipped staff $2.13 an hour and count up to $5.12 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[1][2]
One server, one slow 30-hour week in Utah
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.
- Tip credit conditions
- Pay the required cash wage. Actual tips must bring the total to minimum wage. Federal conditions also apply to federally covered jobs.[1][3][5]
- Who counts as tipped
- Utah: at least $30 a month in tips, received and reported to the employer. The federal test is more than $30.[4][1][5]
Other rates
| Rate | Hourly |
|---|---|
| Youth or training Minor training wageUnder 18, for the first 90 days on the job. Other federal protections still apply.[1] | $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 Utah
Utah 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 | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Bartender | Allowed | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Busser | Allowed | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Food runner | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Host | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Barback | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Expo | Depends | Traditional pools are for jobs that usually get tips. Non-tipped roles need full minimum wage with no tip credit. No managers.[5] |
| Back of house | ||
| Cook | Depends | Only in a pool that meets federal rules: everyone gets full cash minimum wage and no tip credit. No managers.[3][5] |
| Dishwasher | Depends | Only in a pool that meets federal rules: everyone gets full cash minimum wage and no tip credit. No managers.[3][5] |
| Leadership | ||
| Shift lead | Depends | Actual duties decide. A shift lead who qualifies as a manager can't take pooled tips; others follow the usual job and cash-wage rules.[5] |
| Manager or supervisor | Not allowed | Can't take pooled tips. Actual duties and ownership decide, not job titles.[5] |
| Owner | Not allowed | Can't take pooled tips. Actual duties and ownership decide, not job titles.[5] |
- Managers and supervisors
- Managers and supervisors can't take workers' pooled tips. They keep only tips for service they alone provide.[5]
- Owners
- An owner with 20% or more equity who actively manages counts as a manager. No employer may keep workers' tips.[5]
- Back of house
- A 2023 law allows pools with non-tipped workers if they follow federal rules: everyone gets full cash minimum wage and no tip credit.[3][5]
- Who sets the percentages
- Employers can require eligible pools. The arrangement must be in writing and given to workers at hire or before it starts.[4]
- Cap on what a pool can take
- No fixed percentage cap in Utah law or federal rules. Pool eligibility and the written-arrangement rule still apply.[3][4][5]
- Pooling allowed
- Yes. Utah recognizes pools among tipped workers and allows non-tipped workers when federal conditions are met.[3]
Pool rules
Utah tip pools: put it in writing
Utah requires a written pool arrangement, delivered at hire or before it starts. A 2023 law also opened pools to non-tipped workers on federal terms.[4][3][5]
State tip rule text
- Cooks and dishwashers kept out of mandatory pools
- Pool arrangement in writing
2023 statute
- Non-tipped workers allowed in pools that follow federal rules
- Everyone gets full cash minimum wage, no tip credit
07Put it to work
Setting up a tip pool in Utah
Under Utah 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. Can't take 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 Utah'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 Utah
In Utah 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.[4] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[5] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[12][13] |
| Guest notice | None needed | For the tax exemption, a charge added to the bill needs a front-of-bill note, same font size, saying the customer can raise or lower it.[11] |
- 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 Utah say?Business owns it by defaultThe business, by default.[4]
- Step 3Check the cityNo city service charge rules on file for Utah.
- Menu and receipt notice
- For the tax exemption, a charge added to the bill needs a front-of-bill note, same font size, saying the customer can raise or lower it.[11]
- Large-party auto gratuities
- A mandatory automatic charge is a service charge, not a tip. Paid out to staff, it counts toward overtime pay under federal law.[4][12][13]
Local service charge rules
No local service charge rules on file for Utah.
More on the difference: service charge vs tip.
Service charges
In Utah, the service charge belongs to the house
Utah's rule calls a mandatory service charge the employer's money, not a tip. The employer decides how to allocate it.[4]
09Card tips
Card tips in Utah: fees and payout timing
In Utah only the tip's share of the card processing fee can come out of a card tip. Payout deadline: tips count in the pay period they're earned. Federal rules for card tips and pools paid by the regular payday also apply.
Utah allows no more than the card company's percentage. Federal law limits it to the actual cost on the tip, without cutting required wages.[4][5]
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.
- DeadlineUtah rule Tips count in the pay period they're earned. Federal rules for card tips and pools paid by the regular payday also apply.[4][5]
- Last dayFinal pay Let go: paid within 24 hours. Quit without a fixed-term contract: by the next payday. A commission-audit exception applies.[6]
Paydays: At least twice a month, paid within 10 days after the period ends. Yearly-salaried workers can be paid monthly, by the 7th.[6]
Paying tips on a payroll card
- Allowed?YesFull wages must be available on payday, with free access and a deduction statement. Federal choice protections apply.[7]
- Worker consent needed?DependsFederal rules bar forcing workers onto a payroll card. No separate Utah sign-up consent rule was found.[8]
- Free way to get the money?State ruleWorkers must be able to withdraw all earned wages in one free transaction, with full pay available on payday and a deduction statement.[7]
- Must you offer another option?YesFederal rule. Utah's direct-deposit exceptions don't let employers require their own card.[8]
- Holding cash tipsState ruleTips count in the period earned. No Utah cash-tip holding deadline was found. Federal pool payday rules still apply.[4][5]
- Tips shown on the pay stubDependsA deduction statement is required. No separate tip or pool breakdown was found.[6]
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 Utah
Keep each tipped worker's tips and hours on record, shift by shift. Utah: state minimum wage records: three years.
Utah State
- Tip records Track each worker's identity, birth date, hours and wages, plus amounts paid. Federal tip records apply separately where covered.[3][6][5]
- How long to keep them State minimum wage records: three years. General wage records: at least one year. Federal three- and two-year rules may also apply.[3][6][14]
- Tip credit notice Required. Tell workers about the tip credit at hire. Give them the written pool arrangement at hire or before it starts.[4][5]
- Posters and forms Notice of payday, place and rate at hire/changes, or conspicuous posted notice; Written tip-pooling/sharing arrangement and tip-credit notice.[6][4]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[5]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[14]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[5]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Utah?
Workers in Utah can file a tip or wage claim with the Utah Labor Commission, Utah Antidiscrimination and Labor Division (801-530-6800). Filing is free, and this page can't settle a dispute; the state can.[1]
- Phone
- 801-530-6800[1]
- Website
- laborcommission.utah.gov
Retaliation: Employers can't punish workers for filing, planning to file or testifying in a wage case. Remedies include lost wages and benefits.[6]
Penalties: Minimum wage: up to $500 per violation, plus wages, interest and fees, within two years. Late wages: up to 5% a day for 20 days.[3][6]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips stay protected. Wage deductions need legal authorization under Utah law and can't break minimum wage or overtime rules.[6][5]
- BreakageNot allowedTips stay protected. Wage deductions need legal authorization under Utah law and can't break minimum wage or overtime rules.[6][5]
- Register shortagesNot allowedTips stay protected. Wage deductions need legal authorization under Utah law and can't break minimum wage or overtime rules.[6][5]
- UniformsNot allowedTips stay protected. Wage deductions need legal authorization under Utah law and can't break minimum wage or overtime rules.[6][5]
- Card processing feesAllowedOnly the allowed card percentage on the tip. Federal actual-cost and required-wage limits still apply.[4][5]
- A manager's shareNot allowedEmployers, managers and supervisors can't take pool shares.[5]
11Law changes
What changed in Utah tip law, and what's coming
No statewide increase with a published amount is on file for Utah as of . Most recent change: Utah renewed its minimum wage rule after a five-year review. No new rate or tip-pool change came with it ().
Key statutes
- Utah Code 34-40-102–104: minimum wage, coverage and tip pooling
- Utah Code 34-40-106: local minimum-wage restrictions
- Utah Code 34-40-201–205: records, enforcement and remedies
- Utah Code 34-28-3–5, 9, 9.5, 10 and 19: wages, final pay, claims, records and retaliation
- Utah Administrative Code R610-1-4 and R610-3-22: tips and payroll cards; current official eRules text
Not covered here? Ask the Utah Labor Commission, Utah Antidiscrimination and Labor Division at 801-530-6800 or on laborcommission.utah.gov.
12FAQ
Utah tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Utah tip law, each linked to its source.
What is Utah's tipped minimum wage?
Who counts as a tipped employee in Utah?
Does a Utah tip pool have to be in writing?
Yes. The arrangement must be written and given to affected workers at hire or before it takes effect.[4]
Can cooks and dishwashers share in a tip pool?
Who gets a mandatory service charge?
The restaurant. Utah's rule treats service charges as the employer's receipts, not tips. If service charges replace tips, full minimum wage and any overtime are owed.[4]
Can card fees come out of tips?
When is a final paycheck due?
Within 24 hours when the employer ends the job. A worker who quits without a fixed-term contract gets paid on the next payday.[6]
13Compare
How Utah compares with nearby states
Utah borders Arizona, Colorado, Idaho, Nevada, New Mexico and Wyoming. Arizona, Colorado, Nevada and New Mexico pay a higher minimum wage than Utah's $7.25. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Above $2.13
- Colorado tip laws$15.16 min wage $12.14 tipped cash wage Above $2.13
- Idaho tip laws$7.25 min wage $3.35 tipped cash wage Above $2.13
- Nevada tip laws$12.00 min wage No tip credit No tip credit
- New Mexico tip laws$12.00 min wage $3.00 tipped cash wage Above $2.13
- Wyoming tip laws$7.25 min wage Federal $2.13 cash wage Federal
States with the same rules
Same tip credit class as Utah: Tip credit, federal cash wage.
- Indiana tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Kansas tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Nebraska tip laws$15.00 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- North Carolina tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Oklahoma tip laws$7.25 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, and only the tip's share of card fees
- Virginia tip laws$12.77 min wage $2.13 tipped cash wage Also a $2.13 tipped cash wage, 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 Utah setup.
14Sources
Sources for Utah tip laws
Every figure on this page links to one of these 15 sources: 13 for Utah and 2 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Wage Claim - Utah Labor Commissionlaborcommission.utah.gov · Official source · Checked Pinpoint: Utah Minimum Wage section; minimum wage FAQlaborcommission.utah.gov/divisions/utah-antidiscrimination-and-labor-uald/wage-claim
What the source says
“Tipped employees (adults and minors) may be paid $2.13 per hour, but only so long as the tips they earn, in addition to the base wage paid, combined are equal to or exceed the minimum wage.”
“The minimum wage in Utah is $7.25 per hour.”
“Employees receiving tips of at least $30.00 per month may be paid a cash wage of $2.13 per hour, if the total of the cash wage and the tips total at least $7.25 per hour.”
- 2Minimum Wages for Tipped Employees, July 1, 2026 tableU.S. Department of Labor · Official source · Page updated · Checked Pinpoint: July 1, 2026 Utah rowwww.dol.gov/agencies/whd/state/minimum-wage/tipped
What the source says
“Utah 12 $7.25 $5.12 $2.13 More than $30”
- 3Utah Code Chapter 34-40, Utah Minimum Wage ActUtah Legislature · Official source · Checked Pinpoint: 34-40-104(4)(b)(ii), physical p. 3; 34-40-102(1), physical p. 1; 34-40-106(1), physical p. 3le.utah.gov/xcode/Title34/Chapter40/C34-40_1800010118000101.pdf
What the source says
“may compute the remainder of the tipped employee's wage using the tips or gratuities the tipped employee actually receives. (c) A tipped employee shall retain all tips and gratuities except to the extent that the employee participates in a bona fide tip pooling or sharing”
“shall be interpreted consistently with the Fair Labor Standards Act of 1938, 29 U.S.C.”
“A city, town, or county may not establish, mandate, or require a minimum wage that exceeds the federal minimum wage as provided in 29 U.S.C.”
- 4Current R610-1 official eRules HTML via public APIadminrules.utah.gov · Official source · Checked Pinpoint: R 610-1-3(A); R 610-1-4(A); R 610-1-4(D)adminrules.utah.gov/api/rule/1500/file/a0828823-5f62-46a8-b16c-9674cfdd1613.html
What the source says
“$7.25 an hour for all hours employed effective July 24, 2009.”
“must reach a threshold of at least $30.00 per month before credit can be allowed.”
“where an employer mandates that tips be pooled and divided or shared among those employees who customarily and regularly receive tips. 1.”
- 5Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 3; opening paragraph; Typical Problems, Overtime Problems, item 1www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“Employers claiming a tip credit must be able to show in each workweek that tipped employees receive at least the full federal minimum wage when direct (or cash) wages and the tip credit amount are combined.”
“a tipped employee is an employee engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips.”
“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.”
- 6Utah Code Chapter 34-28, Payment of WagesUtah Legislature · Official source · Checked Pinpoint: 34-28-3(1)(a), physical p. 2; 34-28-3(1)(b), physical p. 2; 34-28-3(1)(d), physical p. 2le.utah.gov/xcode/Title34/Chapter28/C34-28_1800010118000101.pdf
What the source says
“in periods no longer than semimonthly on days to be designated in advance by the employer as the regular payday. (b) An employer shall pay for services rendered during a pay period within 10 days after the close of that pay period. (c) If a”
“within 10 days after the close of that pay period. (c) If a payday falls on a Saturday, Sunday, or legal holiday, an employer shall pay wages earned during the pay period on the day preceding the Saturday, Sunday, or legal holiday. (d) If an”
“If an employer hires an employee on a yearly salary basis, the employer may pay the employee on a monthly basis by paying on or before the seventh of the month following the month for which services are rendered. (e) Wages shall be paid in”
- 7Current R610-3 official eRules HTML via public APIadminrules.utah.gov · Official source · Checked Pinpoint: R 610-3-22 opening; R 610-3-22(A); R 610-3-22(B)adminrules.utah.gov/api/rule/1496/file/e7f81188-fb0a-403c-a2e5-871b698c5c41.html
What the source says
“An employer may use a pay card to pay an employee's wages if the following conditions are met: A.”
“With one use, the employee shall be able to withdraw the full amount of earned wages without incurring a fee. "One use" means a single transaction.”
“The full amount of wages for a pay period shall be available for the employee via the pay card on the applicable payday.”
- 8What 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.”
- 9Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3www.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.”
- 10Field Assistance Bulletin No. 2026-1: Withdrawal of Opinion Letters and 80/20 Guidance on Related DutiesU.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.”
- 11Publication 55: Sales Tax Information for Restaurantstax.utah.gov · Official source · Page updated · Checked Pinpoint: Tips and Gratuities, paragraph 2; conditional tax exemptiontax.utah.gov/forms-pubs/pub-55
What the source says
“These charges are not taxable ONLY IF the front of the bill includes a statement — in the same size font as the charge — that the charge is voluntary and may be increased or decreased by the customer.”
- 12Tip 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.”
- 13Revenue 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”
- 14Fact 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.”
“Records on which wage computations are based should be retained for two years,”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
- 15Utah State Bulletin, February 1, 2026, Rule ContinuationsUtah Office of Administrative Rules · Official source · Page updated · Checked Pinpoint: R 610-1 continuation, printed p. 78rules.utah.gov/wp-content/uploads/b20260201.pdf
What the source says
“This rule remains necessary in light of the Commission's continuing responsibility to administer Title 34, Chapter 40, the Act, and the statutory authority contained in Section 34-40-105 to adopt rules necessary to implement the Act.”
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.