The minimum wage for tipped workers in the United States affects many people. It is very important for waiters, bartenders, and delivery drivers. Many people in the service industry get most of their money from tips.
Workers who get tips must know the minimum wage laws. Employers must pay fairly. States have different rules about tips.
Who Are Tipped Workers?
A tipped worker is someone who gets more than $30 in tips each month. This group includes waiters in restaurants, bartenders mixing drinks, hairdressers cutting hair, and drivers delivering food. These workers rely on customer tips to make a living.
What Is the Federal Minimum Wage for Tipped Workers?
In 2025, the federal minimum wage for tipped workers is $2.13 per hour. This low wage works with the tip credit system. Workers must earn at least $7.25 per hour with tips included. If tips do not reach this amount, the boss must pay the difference.
How Does the Tip Credit Work?
The tip credit lets employers pay less per hour. Tips must cover the rest of the wage. If workers do not get enough tips, the boss pays more. This makes sure workers get at least the full minimum wage.
State Minimum Wages for Tipped Workers
Many states have their own rules for tipped wages. Some states do not allow the tip credit. They make employers pay the full wage before tips. This helps workers get better pay.
Example: New York State
New York has special rules. These are different in each region.
New York City:
- Food service workers: Cash wage is $11.00
- Tip credit is $5.50
- Total wage must be $16.50
Long Island & Westchester County:
- Same as New York City
Rest of New York State:
- Cash wage is $10.35
- Tip credit is $5.15
- Total wage must be $15.50
Employers can use the tip credit only if workers get enough tips.
Non-Tipped Duties Matter Too
If a worker spends too much time doing non-tipped tasks, they must get the full wage. For example, cleaning tables or stocking shelves are non-tipped tasks. If these tasks take more than 20% of work time, the tip credit does not count for that time.
Workers Must Keep All Tips
The law says tips belong to the worker. Employers cannot keep tips. Taking tips from workers is illegal. Tips are the worker’s money.
Employers Must Keep Good Records
Employers must record all tips. They must tell workers how pay is counted. If employers break the rules, they may face penalties. They may have to pay extra wages later.
Why This Law Is Important
In 2025, the law protects tipped workers. The goal is fair pay. The federal wage is low, but many states help workers with better laws. Knowing these rules helps workers get their full pay.
Workers’ Rights Checklist
Here is a simple list of rights for tipped workers:
- You must get at least $7.25 per hour total.
- Your boss must pay more if tips are too low.
- Your tips are your property.
- You must know how your pay is counted.
- Non-tipped tasks over 20% must be paid at full wage.
Why States Have Higher Wages
Some states want workers to earn more. They remove the tip credit. They make bosses pay the full minimum wage without counting tips. This means workers can get better pay and rely less on tips alone.
How Employers Should Follow the Law
Employers must follow these rules:
- Pay at least the base wage plus tips to reach minimum wage.
- Keep records of hours, wages, and tips.
- Explain pay details to workers.
- Do not keep or share tips without permission.
What Happens If Rules Are Broken?
If employers break the law, workers can report them. They may face fines. Workers can get unpaid wages back. The Department of Labor checks if employers follow the law.
What Should Workers Do If They Are Paid Less?
Workers should check their pay. If tips and wages are too low, talk to the boss first. If there is no fix, they can ask the Department of Labor for help. They have the right to fair pay.
Example Jobs With Tips
Many jobs depend on tips. Some common examples are:
- Waiters in restaurants
- Bartenders in bars
- Hotel staff carrying bags
- Hairdressers in salons
- Pizza delivery drivers
These workers help people and get tips for their service.
Tip Pooling Rules
Sometimes workers share tips. This is called tip pooling. Tip pools must be fair. Employers cannot take money from the tip pool. Only certain workers can join the pool.
Good Tips Help Workers Live Better
For many, tips are more than half their income. Customers should know this. Leaving good tips helps workers earn a fair living.
Employers and Workers Must Talk
Clear talk about wages helps avoid problems. Employers must tell workers about the tip credit. They must explain how paychecks work. Workers must understand what they earn and why.
Laws Change Often
Laws about minimum wage can change. Workers and employers should check updates each year. Some states raise the minimum wage every year. Staying informed helps everyone follow the law.
Some States Have Big Changes
States like California and Washington pay higher wages. They do not allow tip credits. This means workers get full wages plus tips. This helps workers earn more money.
Why Tip Credit Is Still Used
Some businesses say tip credits help them save money. They say it keeps food and drink prices lower. But many people think workers should get the full wage no matter what.
What the Future May Bring
In 2025, more people want to raise the minimum wage. Some want to end the tip credit. They want all workers to earn enough without counting tips. This debate may change laws soon.
How This Affects Families
When workers earn fair pay, families live better. They can buy what they need. They feel safer. Knowing the law helps workers protect their pay.
Easy Steps for Workers
Workers can do these things to protect their pay:
- Track work hours.
- Write down all tips earned.
- Talk to the boss if pay is too low.
- Report problems to the Department of Labor.
| State/Region | Cash Wage | Tip Credit | Total Wage |
|---|---|---|---|
| Federal Minimum | $2.13 | $5.12 | $7.25 |
| New York City | $11.00 | $5.50 | $16.50 |
| Long Island/Westchester | $11.00 | $5.50 | $16.50 |
| Rest of New York State | $10.35 | $5.15 | $15.50 |
Final Words for Tipped Workers
Knowing your rights is power. Tipped workers deserve respect and fair pay. Talk to your boss, check your pay, and keep learning. Fair pay makes life better for you and your family.
