District of Columbia tip pooling laws & tipped minimum wage
In District of Columbia, employers can pay tipped workers $10.00/hr as long as tips bring them to the $17.95 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $17.95/hr |
| Minimum cash wage for tipped workers | $10.00/hr |
| Maximum tip credit | $7.95/hr |
| Tips belong to | Employees — always |
Rates reviewed June 2026. Rates change — confirm with the District of Columbia labor department. Not legal advice.
What's specific to District of Columbia
DC is phasing out the tip credit under Initiative 82 — the tipped cash wage rises each July 1 until it matches the full minimum wage in 2027. Both rates adjust July 1; verify current figures.
Tip pooling in District of Columbia
District of Columbia follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.00/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can only be deducted from tips where state law allows it .
What this means for your tip-out
Because part of your legal wage in District of Columbia comes from tips, every dollar you tip out matters — your employer's tip credit assumes those tips reached you. Track what you actually keep. Use our tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
District of Columbia tip law FAQs
What is the tipped minimum wage in District of Columbia?
Employers in District of Columbia may pay tipped employees a cash wage of $10.00/hr and claim a tip credit of up to $7.95/hr toward the $17.95 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in District of Columbia?
District of Columbia follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $10.00/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a cut of the tip pool in District of Columbia?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including District of Columbia. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).