Tip pooling rules by state
Tip law has two layers: federal rules that apply everywhere, and state rules that can be much stricter. Find your state below for its tipped minimum wage, tip credit, and pooling rules — or start with the federal baseline.
The federal baseline (applies in every state)
Tips belong to employees. Under the FLSA, employers, managers, and supervisors may never keep any portion of employee tips — not from a tip jar, not from a pool, no matter how the pay is structured.
Tip pooling is generally legal, and employers can usually require it. But who may be in the pool depends on the tip credit: if the employer takes a tip credit (pays a cash wage below minimum wage), a mandatory pool may only include workers who customarily receive tips — servers, bussers, bartenders, runners, hosts. If the employer pays everyone full minimum wage with no tip credit, the pool may also include back-of-house staff like cooks and dishwashers.
The tip credit math: federally, employers may pay tipped workers as little as $2.13/hr in cash and count up to $5.12/hr of tips toward the $7.25 minimum. If tips don't cover the gap, the employer must make up the difference. Many states require a higher cash wage — and seven ban the credit entirely.
States with no tip credit ("one fair wage")
In Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, tipped workers receive the full state minimum wage in cash, and all tips come on top.
Every state's tipped wage & pooling rules (July 2026)
| State | Min wage | Tipped cash wage | Tip credit |
| Alabama | $7.25 | $2.13 | $5.12 |
| Alaska | $14.00 | Full min. wage | Not allowed |
| Arizona | $15.15 | $12.15 | $3.00 |
| Arkansas | $11.00 | $2.63 | $8.37 |
| California | $16.90 | Full min. wage | Not allowed |
| Colorado | $15.16 | $12.14 | $3.02 |
| Connecticut | $16.94 | $6.38 | $10.56 |
| Delaware | $15.00 | $2.23 | $12.77 |
| District of Columbia | $18.40 | $10.30 | $8.10 |
| Florida | $14.00 | $10.98 | $3.02 |
| Georgia | $7.25 | $2.13 | $5.12 |
| Hawaii | $16.00 | $14.75 | $1.25 |
| Idaho | $7.25 | $3.35 | $3.90 |
| Illinois | $15.00 | $9.00 | $6.00 |
| Indiana | $7.25 | $2.13 | $5.12 |
| Iowa | $7.25 | $4.35 | $2.90 |
| Kansas | $7.25 | $2.13 | $5.12 |
| Kentucky | $7.25 | $2.13 | $5.12 |
| Louisiana | $7.25 | $2.13 | $5.12 |
| Maine | $15.10 | $7.55 | $7.55 |
| Maryland | $15.00 | $3.63 | $11.37 |
| Massachusetts | $15.00 | $6.75 | $8.25 |
| Michigan | $13.73 | $5.49 | $8.24 |
| Minnesota | $11.41 | Full min. wage | Not allowed |
| Mississippi | $7.25 | $2.13 | $5.12 |
| Missouri | $15.00 | $7.50 | $7.50 |
| Montana | $10.85 | Full min. wage | Not allowed |
| Nebraska | $15.00 | $2.13 | $12.87 |
| Nevada | $12.00 | Full min. wage | Not allowed |
| New Hampshire | $7.25 | $3.27 | $3.98 |
| New Jersey | $15.92 | $6.05 | $9.87 |
| New Mexico | $12.00 | $3.00 | $9.00 |
| New York | $16.00 | $10.70 | $5.30 |
| North Carolina | $7.25 | $2.13 | $5.12 |
| North Dakota | $7.25 | $4.86 | $2.39 |
| Ohio | $11.00 | $5.50 | $5.50 |
| Oklahoma | $7.25 | $2.13 | $5.12 |
| Oregon | $15.55 | Full min. wage | Not allowed |
| Pennsylvania | $7.25 | $2.83 | $4.42 |
| Rhode Island | $16.00 | $3.89 | $12.11 |
| South Carolina | $7.25 | $2.13 | $5.12 |
| South Dakota | $11.85 | $5.93 | $5.92 |
| Tennessee | $7.25 | $2.13 | $5.12 |
| Texas | $7.25 | $2.13 | $5.12 |
| Utah | $7.25 | $2.13 | $5.12 |
| Vermont | $14.42 | $7.21 | $7.21 |
| Virginia | $12.77 | $2.13 | $10.64 |
| Washington | $17.13 | Full min. wage | Not allowed |
| West Virginia | $8.75 | $2.62 | $6.13 |
| Wisconsin | $7.25 | $2.33 | $4.92 |
| Wyoming | $7.25 | $2.13 | $5.12 |
Rates reviewed July 2026. Several states adjust rates mid-year and many cities set higher local minimums — always confirm with your state labor department. This is general information, not legal advice.
Tip pooling FAQs
Is tip pooling legal?
Yes, tip pooling is legal under federal law in every state except where state law restricts it (Minnesota and New Hampshire require pooling to be voluntary). Managers and supervisors can never keep employee tips, and if the employer takes a tip credit, the pool may only include workers who customarily receive tips.
Can a tip pool include cooks and dishwashers?
Only if the employer pays everyone full minimum wage and takes no tip credit. Under the FLSA, employers who take a tip credit may only include customarily tipped employees (servers, bussers, bartenders, runners) in a mandatory pool. Some states are stricter — Massachusetts never allows kitchen staff in a pool.
What states do not allow a tip credit?
Seven states ban the tip credit entirely: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. In these states tipped workers must receive the full state minimum wage in cash before tips.