Wisconsin tip laws (2026)
Wisconsin's minimum wage is $7.25, but the tipped cash wage is $2.33, a bit above the federal $2.13, so the max tip credit is $4.92. Workers sign a tip declaration every pay period. Tip pools run on a split the employees agree to among themselves.
Wisconsin at a glance
Tip credit allowedWisconsin: $7.25 an hour minimum wage. Tipped staff can be paid $2.33 cash, with up to $4.92 counted from tips.
| State minimum wage | $7.25/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $2.33 | Plus up to $4.92 in tips = $7.25.[1] |
| Max tip credit | $4.92 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools: it depends.[1] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee, under federal rules.[2] |
| Card tip payout | Card tips are due by the regular payday. | Banquet amounts for staff and listed service-charge tips are due by the end of the pay period.[1] |
| Local minimum wages | None | State law blocks local rates.[3] |
Rates verified against the Wisconsin Department of Workforce Development, Equal Rights 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 Wisconsin?
In Wisconsin you can take a tip credit of up to $4.92 an hour 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 $2.33 cash and count up to $4.92 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Depends | The state rule describes pools the employees agree to. Tips the employer controls don't count as the workers' tips. Federal limits also apply.[1] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| 04 | Include cooks and dishwashers? | Depends | Under federal law, cooks and dishwashers can join a mandatory pool only if everyone gets full minimum wage in cash. Stricter state rules still apply.[2] |
| 05 | Give managers or supervisors a share? | No | Federal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[2] |
| 06 | Let an owner keep any of the tips? | No | Federal law bars employers from keeping workers' tips, including through a tip pool.[2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employees agree on the split among themselves. No set cap. Tips the employer controls can't be counted as the workers' own tips.[1] |
| 08 | Take card processing fees out of tips? | Pro rata (federal) | Federal rule: only 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.[2] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday. Banquet amounts for staff and listed service-charge tips are due by the end of the pay period.[1] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[2] |
| 11 | Keep a mandatory service charge for the house? | Depends | Yes, by default.[1] |
| 12 | Pay tips on a payroll card? | Depends (federal) | Federal rule: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[4] |
03State vs federal
Wisconsin vs federal law
Wisconsin sets a stricter rule than federal law on 2 of the 10 rules below. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Wisconsin | Comparison |
|---|---|---|---|
| Minimum wageSame as federal | Federal$7.25[2] | Wisconsin$7.25[1] | Same as federal |
| Tipped cash wageStricter | Federal$2.13[2] | Wisconsin$2.33[1] | Stricter |
| Max tip creditStricter | Federal$5.12[2] | Wisconsin$4.92[1] | Stricter |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[2] | WisconsinState rule: someone who customarily and regularly gets tips, with no dollar minimum. The federal test is more than $30 a month.[5] | State rule |
| Managers in the poolFederal applies | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[2] | WisconsinFederal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[2] | Federal applies |
| Kitchen in the poolFederal applies | 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.[2] | WisconsinUnder federal law, cooks and dishwashers can join a mandatory pool only if everyone gets full minimum wage in cash. Stricter state rules still apply.[2] | Federal applies |
| Card fees from tipsFederal applies | 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.[2] | WisconsinFederal rule applies.[1] | Federal applies |
| 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.[2] | WisconsinCard tips are due by the regular payday. Banquet amounts for staff and listed service-charge tips are due by the end of the pay period.[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.[2] | WisconsinThe business's money[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.[2] | WisconsinOvertime starts after 40 hours. The regular rate counts cash wage plus tip credit, not tips above the credit. The credit doesn't grow for overtime.[1] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Wisconsin fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Wisconsin
In Wisconsin employers can pay tipped staff $2.33 an hour and count up to $4.92 in tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Wisconsin
A busy week with $147.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Each week, cash plus tips the worker keeps must reach minimum wage. Workers sign a tip declaration each pay period, backed by payroll tax records.[1]
- Who counts as tipped
- State rule: someone who customarily and regularly gets tips, with no dollar minimum. The federal test is more than $30 a month.[5]
- Overtime
- Overtime starts after 40 hours. The regular rate counts cash wage plus tip credit, not tips above the credit. The credit doesn't grow for overtime.[1]
- Side work and dual jobs
- No state rule. Federal rule applies: current 29 CFR 531.56(e) is the restored 1967 occupation-based dual-jobs rule. No tip credit for a separate non-tipped occupation; related duties within the tipped occupation need not themselves produce tips. The vacated 2021 federal 80/20 and 30-continuous-minute limits are not current regulatory limits. FAB 2026-1 withdraws historical opinion letters and confirms WHD enforcement guidance no longer sets specific time limits; it is agency guidance, not a new statute or regulation.[6][7][1]
Other rates
| Rate | Hourly |
|---|---|
| Tipped cash wage Opportunity tipped employeeUnder 20, first 90 consecutive days. Cash plus tips must reach $5.90, or the employer pays the gap. Since .[1] | $2.13 |
| Youth or training Opportunity employeeUnder 20, for the first 90 consecutive days with an employer. Federal and other higher protections still apply.[8] | $5.90 |
Scheduled increases
No statewide increase with a published amount is on file as of .
06Tip pool
Who can be in the tip pool in Wisconsin
Wisconsin allows tip pools. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Bartender | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Busser | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Food runner | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Host | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Barback | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Expo | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Back of house | ||
| Cook | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Dishwasher | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Leadership | ||
| Shift lead | Depends | Pools are employee-agreed. With a tip credit, ordinary kitchen staff stay out. Full-minimum pools can include eligible non-managers.[2] |
| Manager or supervisor | Not allowed | Federal law bars taking other workers' pooled tips.[2] |
| Owner | Not allowed | Federal law bars taking other workers' pooled tips.[2] |
- Managers and supervisors
- Federal law bars managers and supervisors from taking other workers' tips. Tips for service they alone provide are separate.[2]
- Owners
- Federal law bars employers from keeping workers' tips, including through a tip pool.[2]
- Back of house
- Under federal law, cooks and dishwashers can join a mandatory pool only if everyone gets full minimum wage in cash. Stricter state rules still apply.[2]
- Who sets the percentages
- The employees agree on the split among themselves. No set cap. Tips the employer controls can't be counted as the workers' own tips.[1]
- 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.[2][1]
- Pooling allowed
- Yes.[1]
07Put it to work
Setting up a tip pool in Wisconsin
Under Wisconsin 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. Federal law bars taking other workers' 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 Wisconsin'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 Wisconsin
In Wisconsin 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.[1] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[2] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[9][10] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[1] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Wisconsin say?Business owns it by defaultThe business, by default.[1]
- Step 3Check the cityNo city service charge rules on file for Wisconsin.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[1]
- Large-party auto gratuities
- An automatic charge follows the state service-charge rule. Federal law treats it as wages, so it can't count toward a tip credit.[1]
Local service charge rules
No local service charge rules on file for Wisconsin.
More on the difference: service charge vs tip.
09Card tips
Card tips in Wisconsin: fees and payout timing
In Wisconsin only the tip's share of the card processing fee can come out of a card tip, under federal rules. Payout deadline: card tips are due by the regular payday. Banquet amounts for staff and listed service-charge tips are due by the end of the pay period.
No Wisconsin card-fee rule. Federal law allows only the actual proportional fee on the tip, without cutting minimum wage or worker tip ownership.[2]
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.
- DeadlineWisconsin rule Card tips are due by the regular payday. Banquet amounts for staff and listed service-charge tips are due by the end of the pay period.[1]
- Last dayFinal pay Most separations: paid on the regular schedule. Closures, mergers, liquidations or relocations: unpaid wages within 24 hours.[11]
Paydays: Most employers pay at least monthly, for wages earned no more than 31 days before payday. Some legal and union-contract exceptions apply.[11]
Paying tips on a payroll card
- Allowed?Depends (federal)No state rule. Federal rule applies: it depends. Optional payroll-card programs are subject to federal and state wage-payment protections.[4][1]
- Worker consent needed?Yes (federal)No state rule. Federal rule applies: yes. The employer cannot require its payroll card.[4][1]
- Free way to get the money?State ruleNo distinct payroll-card program rule identified. A mandatory direct-deposit program must impose no participation cost on the employee.[12]
- Must you offer another option?Yes
- Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[2][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.[13][1]
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”
Deductions
Breakage and walkouts need more than a policy
Tips can't cover losses at federally covered employers. For deductions from wages, Wisconsin bars blanket advance permission, and a deduction needs one of three things.[14][15]
- The worker's written consent, given after the loss and before the deduction
- A finding of fault by a worker representative
- A court ruling that the worker is liable
10Records
Records and notices in Wisconsin
Keep each tipped worker's tips and hours on record, shift by shift. Wisconsin: at least three years for payroll and other required records.
Wisconsin State
- Tip records Track identity, employment dates, daily start and end times, meal breaks, hours, wages and deduction reasons, plus signed tip declarations.[16]
- How long to keep them At least three years for payroll and other required records.[16]
- Tip credit notice Required. Federal notice: cash wage, credit amount, that credit can't exceed tips, and pool rules. Wisconsin adds a signed tip declaration each pay period.[1]
- Posters and forms Wisconsin minimum-wage posting under 104.09; Signed employee tip declaration each pay period.[8][1]
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.[2]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[17]
- 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.[2]
- 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 Wisconsin?
Workers in Wisconsin can file a tip or wage claim with the Wisconsin Department of Workforce Development, Equal Rights Division (608-266-6860). Filing is free, and this page can't settle a dispute; the state can.[8]
Retaliation: Firing or punishing workers for wage or deduction complaints, enforcement efforts or testimony is barred under 111.322(2m).[19]
Penalties: Unpaid wages and reasonable fees, plus up to 50% more before the agency finishes, or 100% after. Illegal loss deductions can mean double recovery.[15]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedFederally covered employers can't keep tips for business costs. Wisconsin's wage-deduction rules for losses and uniforms are a separate question.[2]
- BreakageNot allowedFederally covered employers can't keep tips for business costs. Wisconsin's wage-deduction rules for losses and uniforms are a separate question.[2]
- Register shortagesNot allowedFederally covered employers can't keep tips for business costs. Wisconsin's wage-deduction rules for losses and uniforms are a separate question.[2]
- UniformsNot allowedFederally covered employers can't keep tips for business costs. Wisconsin's wage-deduction rules for losses and uniforms are a separate question.[2]
- Card processing feesDependsOnly the actual proportional card fee for covered workers. State tip ownership and minimum wage limits still apply.[2]
- A manager's shareNot allowedFederal law bars employers and managers from keeping workers' tips.[2]
11Law changes
What changed in Wisconsin tip law, and what's coming
No statewide increase with a published amount is on file for Wisconsin as of .
No changes to Wisconsin tip or wage rules on file for the last 24 months.
Key statutes
- DWD 272.01, .03, .11–.12
- Wisconsin 104.001
- Wisconsin 103.455
- Wisconsin 109.03, .11; 111.322(2m)
Not covered here? Ask the Wisconsin Department of Workforce Development, Equal Rights Division at 608-266-6860 or on dwd.wisconsin.gov/er/laborstandards.
12FAQ
Wisconsin tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Wisconsin tip law, each linked to its source.
What is Wisconsin's tipped minimum wage?
What is Wisconsin's opportunity wage?
Do tipped workers have to sign anything?
Yes. To take a tip credit, the worker signs a tip declaration every pay period. Payroll records must show the tips and the tax withheld on them.[1]
Can the employer set the tip-pool split?
When are banquet service charges paid out?
Amounts negotiated for staff, and any identified tip portion, are due by the end of the pay period they were earned in.[1]
Can a restaurant take breakage or shortages out of pay?
Can a Wisconsin city set a higher minimum wage?
No. State law preempts local minimum wage ordinances.[3]
13Compare
How Wisconsin compares with nearby states
Wisconsin borders Iowa, Illinois, Michigan and Minnesota. Illinois, Michigan and Minnesota pay a higher minimum wage than Wisconsin'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 Wisconsin: Tip credit, cash wage above federal.
- Arkansas tip laws$11.00 min wage $2.63 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Connecticut tip laws$16.94 min wage $6.38 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Hawaii tip laws$16.00 min wage $14.75 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
- 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
- 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
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 Wisconsin setup.
14Sources
Sources for Wisconsin tip laws
Every figure on this page links to one of these 19 sources: 11 for Wisconsin and 8 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1DWD 272.03 Minimum Wage and TipsWisconsin Legislature · Official source · Checked Pinpoint: DWD 272.03(1)(a); 272.03(2)(b)1docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/272/03
What the source says
“All employees except opportunity employees $2.33 per hr.”
“All employees except opportunity and minor employees $7.25 per hour.”
“the employer must have a tip declaration signed by the tipped employee each pay period”
- 2Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Tip Credit, paragraph 2; Employers, Including Managers and Supervisors, May Not Keep Tipswww.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).”
- 3Wisconsin 104.001 Uniform State MinimumWisconsin Legislature · Official source · Checked Pinpoint: 104.001(2)docs.legis.wisconsin.gov/statutes/statutes/104/001
What the source says
“A city, village, town, or county may not enact and administer an ordinance establishing a minimum wage.”
“104.001”
- 4What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: definition, paragraph 1; paragraph following definition; Federal Regulation Ewww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“A payroll card is a prepaid card arranged by an employer for the purpose of paying its employees’ wages or salary.”
“Your employer can’t require you to receive your wages on a payroll card.”
“Your employer has to offer you at least one alternative to a payroll card.”
- 5DWD 272.01 DefinitionsWisconsin Legislature · Official source · Checked docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/272/01
What the source says
“customarily and regularly receive tips or gratuities from patrons or others.”
- 6Tip Regulations under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Regulatory History 2020-2024, item 3; Regulatory History, item 4; Tip regulation topics listwww.dol.gov/agencies/whd/flsa/tips
What the source says
“a federal court vacated the revision, with the effect of reinstating the Department’s original dual jobs regulation.”
“On December 16, 2024, the Department announced a technical rule to restore the original dual jobs regulation at 29 CFR 531.56(e) .”
“29 CFR 531.56(e) ); and Calculating overtime pay for tipped employees ( 29 CFR 531.60 ).”
- 7Field Assistance Bulletin No. 2026-1U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: p. 1, introductory paragraphs; p. 1, introductionwww.dol.gov/sites/dolgov/files/WHD/fab/fab2026-1.pdf
What the source says
“These withdrawn opinion letters and the FOH provision that implemented them should no longer be relied upon as WHD enforcement guidance.”
“withdrawn on January 14, 2025 (see WHD FOH Revision 785), no longer reflects the Division’s policy or interpretation of the Act.”
“This Field Assistance Bulletin (FAB) withdraws Wage and Hour Division (WHD or Division) Opinion Letters FLSA-895 (Aug. 8, 1979); WH-502 (Mar. 28, 1980); and FLSA-854, 1985 WL 1259240 (Dec. 20, 1985).”
- 8Wisconsin Minimum Wage RatesWisconsin Department of Workforce Development · Official source · Checked dwd.wisconsin.gov/eworkboard/min-wage
What the source says
“Effective July 24, 2009”
“Opportunity Employees: $5.90 per Hour”
“Wisconsin Minimum Wage Rates”
- 9Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 10Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 11Wisconsin 109.03 Wage PaymentWisconsin Legislature · Official source · Checked Pinpoint: 109.03(1); 109.03(2),(4)docs.legis.wisconsin.gov/statutes/statutes/109/03
What the source says
“all wages earned by the employee to a day not more than 31 days prior to the date of payment.”
“shall pay all unpaid wages to the employee at the usual place of payment within 24 hours of the time of separation.”
“Payment to discharged or resigned employees.”
- 12Wage Payment and Collection LawWisconsin Department of Workforce Development · Official source · Checked Pinpoint: Mandatory Direct Deposit Wage Paymentsdwd.wisconsin.gov/er/laborstandards/wages.htm
What the source says
“There cannot be any cost to you to participate in a mandatory program.”
“Labor Standards”
- 13Questions 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.”
- 14Wisconsin 103.455 Loss DeductionsWisconsin Legislature · Official source · Checked docs.legis.wisconsin.gov/statutes/statutes/103/455
What the source says
“Deductions for faulty workmanship, loss, theft or damage.”
- 15Wisconsin 109.11 PenaltiesWisconsin Legislature · Official source · Checked Pinpoint: 109.11(2)(a),(b)docs.legis.wisconsin.gov/statutes/statutes/109/11
What the source says
“increased wages of not more than 100 percent of the amount of those wages due and unpaid.”
- 16DWD 272.11 Employer RecordsWisconsin Legislature · Official source · Checked Pinpoint: 272.11(1); 272.03(2)(b); 272.11(1)docs.legis.wisconsin.gov/code/admin_code/dwd/270_279/272/11
What the source says
“Every employer shall make and keep for at least 3 years payroll or other records”
“for at least 3 years payroll or other records”
- 17Fact 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,”
- 18Equal Rights Division Contact InformationWisconsin Department of Workforce Development · Official source · Checked Pinpoint: Contactdwd.wisconsin.gov/er/contacts.htm
What the source says
“Phone: 608-266-6860”
- 19Wisconsin 111.322 Prohibited DiscriminationWisconsin Legislature · Official source · Checked Pinpoint: 111.322(2m)(a),(b), includes 103.455/104.12/109.03docs.legis.wisconsin.gov/statutes/statutes/111/ii/322
What the source says
“The individual files a complaint or attempts to enforce any right under”
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.