50-State Tipped Minimum Wage & Tip Credit Laws (2026)
State-by-state reference for employers and hospitality workers. Compare direct cash wages, maximum tip credit deductions, and identify the 7 states where tip credits are prohibited by statute.
Did your restaurant employer violate the FLSA 80/20 prep cap?
Calculate back-pay wage liabilities and statutory liquidated damages under 29 C.F.R. § 541.56.
| State / Jurisdiction | Tip Credit Legality | Direct Cash Wage (Min) | Max Tip Credit Allowed | Combined Min Wage | Statutory Notes |
|---|---|---|---|---|---|
| Alabama (AL) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Alaska (AK) | PROHIBITED (Full Cash Wage) | $11.73/hr | $0.00 | $11.73/hr | No tip credit allowed. Employers must pay full minimum wage plus all tips. |
| Arizona (AZ) | Permitted (≤20% Prep) | $11.70/hr | $3.00/hr | $14.70/hr | Standard FLSA / State dual-jobs rules apply. |
| Arkansas (AR) | Permitted (≤20% Prep) | $2.63/hr | $8.37/hr | $11.00/hr | Standard FLSA / State dual-jobs rules apply. |
| California (CA) | PROHIBITED (Full Cash Wage) | $16.50/hr | $0.00 | $16.50/hr | No tip credit allowed under Cal. Lab. Code § 351. Paying less than $16.50/hr is an immediate wage theft violation. |
| Colorado (CO) | Permitted (≤20% Prep) | $11.79/hr | $3.02/hr | $14.81/hr | Standard FLSA / State dual-jobs rules apply. |
| Connecticut (CT) | Permitted (≤20% Prep) | $6.38/hr | $9.97/hr | $16.35/hr | Standard FLSA / State dual-jobs rules apply. |
| Delaware (DE) | Permitted (≤20% Prep) | $2.23/hr | $12.77/hr | $15.00/hr | Standard FLSA / State dual-jobs rules apply. |
| District of Columbia (DC) | Permitted (≤20% Prep) | $10.00/hr | $7.50/hr | $17.50/hr | Tipped wage phasing up to match full minimum wage under Initiative 82. |
| Federal Floor (FED) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Florida (FL) | Permitted (≤20% Prep) | $9.98/hr | $3.02/hr | $13.00/hr | Standard FLSA / State dual-jobs rules apply. |
| Georgia (GA) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Hawaii (HI) | Permitted (≤20% Prep) | $12.75/hr | $1.25/hr | $14.00/hr | Standard FLSA / State dual-jobs rules apply. |
| Idaho (ID) | Permitted (≤20% Prep) | $3.35/hr | $3.90/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Illinois (IL) | Permitted (≤20% Prep) | $9.00/hr | $6.00/hr | $15.00/hr | Standard FLSA / State dual-jobs rules apply. |
| Indiana (IN) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Iowa (IA) | Permitted (≤20% Prep) | $4.35/hr | $2.90/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Kansas (KS) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Kentucky (KY) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Louisiana (LA) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Maine (ME) | Permitted (≤20% Prep) | $7.33/hr | $7.32/hr | $14.65/hr | Standard FLSA / State dual-jobs rules apply. |
| Maryland (MD) | Permitted (≤20% Prep) | $3.63/hr | $11.37/hr | $15.00/hr | Standard FLSA / State dual-jobs rules apply. |
| Massachusetts (MA) | Permitted (≤20% Prep) | $6.75/hr | $8.25/hr | $15.00/hr | Standard FLSA / State dual-jobs rules apply. |
| Michigan (MI) | Permitted (≤20% Prep) | $4.01/hr | $6.55/hr | $10.56/hr | Standard FLSA / State dual-jobs rules apply. |
| Minnesota (MN) | PROHIBITED (Full Cash Wage) | $11.13/hr | $0.00 | $11.13/hr | No tip credit allowed. Employers must pay full minimum wage plus tips. |
| Mississippi (MS) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Missouri (MO) | Permitted (≤20% Prep) | $6.15/hr | $6.15/hr | $12.30/hr | Standard FLSA / State dual-jobs rules apply. |
| Montana (MT) | PROHIBITED (Full Cash Wage) | $10.55/hr | $0.00 | $10.55/hr | No tip credit allowed by statute. |
| Nebraska (NE) | Permitted (≤20% Prep) | $2.13/hr | $11.37/hr | $13.50/hr | Standard FLSA / State dual-jobs rules apply. |
| Nevada (NV) | PROHIBITED (Full Cash Wage) | $12.00/hr | $0.00 | $12.00/hr | Tip credits prohibited by Nevada constitutional amendment. |
| New Hampshire (NH) | Permitted (≤20% Prep) | $3.26/hr | $3.99/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| New Jersey (NJ) | Permitted (≤20% Prep) | $5.26/hr | $10.23/hr | $15.49/hr | Standard FLSA / State dual-jobs rules apply. |
| New Mexico (NM) | Permitted (≤20% Prep) | $3.00/hr | $9.00/hr | $12.00/hr | Standard FLSA / State dual-jobs rules apply. |
| New York (NY) | Permitted (≤20% Prep) | $10.65/hr | $5.35/hr | $16.00/hr | Standard FLSA / State dual-jobs rules apply. |
| North Carolina (NC) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| North Dakota (ND) | Permitted (≤20% Prep) | $4.86/hr | $2.39/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Ohio (OH) | Permitted (≤20% Prep) | $5.35/hr | $5.35/hr | $10.70/hr | Standard FLSA / State dual-jobs rules apply. |
| Oklahoma (OK) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Oregon (OR) | PROHIBITED (Full Cash Wage) | $14.70/hr | $0.00 | $14.70/hr | No tip credit allowed in Oregon ($15.95 in Portland Metro). |
| Pennsylvania (PA) | Permitted (≤20% Prep) | $2.83/hr | $4.42/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Rhode Island (RI) | Permitted (≤20% Prep) | $3.89/hr | $11.11/hr | $15.00/hr | Standard FLSA / State dual-jobs rules apply. |
| South Carolina (SC) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| South Dakota (SD) | Permitted (≤20% Prep) | $5.75/hr | $5.75/hr | $11.50/hr | Standard FLSA / State dual-jobs rules apply. |
| Tennessee (TN) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Texas (TX) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Utah (UT) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Vermont (VT) | Permitted (≤20% Prep) | $7.01/hr | $7.00/hr | $14.01/hr | Standard FLSA / State dual-jobs rules apply. |
| Virginia (VA) | Permitted (≤20% Prep) | $2.13/hr | $10.28/hr | $12.41/hr | Standard FLSA / State dual-jobs rules apply. |
| Washington (WA) | PROHIBITED (Full Cash Wage) | $16.66/hr | $0.00 | $16.66/hr | No tip credit allowed under Washington state law ($19.97 in Seattle). |
| West Virginia (WV) | Permitted (≤20% Prep) | $2.62/hr | $6.13/hr | $8.75/hr | Standard FLSA / State dual-jobs rules apply. |
| Wisconsin (WI) | Permitted (≤20% Prep) | $2.33/hr | $4.92/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
| Wyoming (WY) | Permitted (≤20% Prep) | $2.13/hr | $5.12/hr | $7.25/hr | Standard FLSA / State dual-jobs rules apply. |
Legislative Trajectory Tracker
Municipal & City-Level Tip Credit Phaseout Schedules (2026–2028)
Several major U.S. metropolitan jurisdictions have enacted binding ordinances to phase out the sub-minimum tipped wage credit completely.
Washington, D.C. (Initiative 82)
Target: $0.00 Tip Credit by July 2027
Passed by voters in 2022. Tipped minimum cash wage escalates incrementally each July until matching the full D.C. minimum wage ($17.50+) with zero allowable employer tip credit.
Chicago, IL (One Fair Wage)
Target: Full Minimum Wage by July 1, 2028
Ordinance phased over 5 years. The sub-minimum tipped wage increases by 8% of the full minimum wage each year, eliminating employer tip credits by July 1, 2028.
Flagstaff, Arizona
Status: Tip Credit Completely Abolished
Under municipal minimum wage code § 15-01-001, all hospitality and tipped employees must be paid 100% of the city regular minimum wage directly in cash.