Tip Credit Compliance Checker 2026
Are you being paid at least the legal minimum for tipped work? Enter your state, cash wage, hours, and tips to see whether the pay structure complies with FLSA and your state's tipped-wage rules (DOL table, July 1 2026).
Your work situation
Compliance verdict
Tip credit rules (FLSA 29 U.S.C. § 203(m)): the employer may count tips toward minimum wage only up to the state's maximum credit, only for customarily tipped employees, and never below the cash floor. Underpayment of minimum wage can be recovered through the DOL Wage and Hour Division or a state labor complaint.
How tip credit works
In most states the minimum wage for tipped employees has three parts: the cash wage the employer must pay out of pocket, the tip credit the employer may count toward minimum wage, and the combined minimum cash + tips must reach. The federal floor is $2.13 cash + $5.12 credit = $7.25 combined; roughly half the states set higher cash wages or no credit at all. This checker uses the official DOL table for every state and DC, so it reflects your state's current numbers — including the seven no-tip-credit states.
Red flags this tool catches
- Below-floor cash wage — you are paid under the state's minimum cash wage.
- Tip-credit shortfall — cash + tips do not reach the full minimum wage on slow shifts; the employer must make up the difference.
- No-credit states — your employer is taking a tip credit where the law forbids it (AK, CA, MN, MT, NV, OR, WA, and others by industry).
What to do if you think you're underpaid
Keep pay stubs and tip records, then file a wage complaint with the U.S. Department of Labor Wage and Hour Division or your state labor department. Back-wage claims for minimum-wage violations can cover up to 2–3 years of unpaid amounts plus interest, and retaliation against workers who complain is illegal under FLSA § 215.
Related tools
- Tipped minimum wage by state (2026) — full state-by-state table with notes
- Take-home pay calculator — what your cash + tips actually net after tax
- Tip income tax estimator — OBBBA "no tax on tips" deduction
- Overtime calculator — FLSA 1.5× rules for tipped workers
- Tipping hub — every tipping guide and calculator in one place
- Tip percentage compare — see how different tip rates change the total