Minnesota tip pooling laws & tipped minimum wage
Minnesota is one of only seven states that ban the tip credit: every tipped worker gets the full minimum wage in cash, and tips are pure upside.
| Regular minimum wage | $11.41/hr |
| Minimum cash wage for tipped workers | $11.41/hr (full minimum) |
| Maximum tip credit | Not allowed |
| Tips belong to | Employees — always |
Rates reviewed June 2026. Rates change — confirm with the Minnesota labor department. Not legal advice.
What's specific to Minnesota
Minnesota bans the tip credit AND bans mandatory tip pooling — employers cannot require employees to share tips. Any pooling must be genuinely voluntary among employees.
Tip pooling in Minnesota
Mandatory tip pooling is illegal in Minnesota. Employees may share tips only by their own voluntary agreement, without employer coercion.
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 — and several no-tip-credit states restrict that practice too.
What this means for your tip-out
Because Minnesota pays full minimum wage before tips, tip-outs hit less hard — your base pay is guaranteed regardless of how the pool splits. Still, the math matters on busy nights. 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.
Minnesota tip law FAQs
What is the tipped minimum wage in Minnesota?
Minnesota does not allow a tip credit, so tipped employees must be paid the full minimum wage of $11.41/hr in cash. All tips come on top of that wage.
Is mandatory tip pooling legal in Minnesota?
Mandatory tip pooling is illegal in Minnesota. Employees may share tips only by their own voluntary agreement, without employer coercion.
Can my manager take a cut of the tip pool in Minnesota?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Minnesota. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).