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This question is about tipped minimum wage by state.

What is a tipped employee?

By Zippia Team - Dec. 7, 2022

The federal definition of a tipped employee is anyone who makes over $30 per month in tips. However, this varies by state, as there are 16 states that have adopted the federal minimum. These include: Alabama, Colorado, Delaware, Idaho, Iowa, Kentucky, Maine, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, Utah, Virginia, and Wyoming.

The next most common definition is employees who make at least $20 per month from tips, and seven states who've adopted this standard include: Arkansas, Hawaii, Illinois, Kansas, Massachusetts, North Carolina, and Texas.

Additionally, there are three outlier states:

  • Connecticut: Any employee that makes $10 or more in tips per week

  • South Dakota: Any employee that makes $35 or more in tips per month

  • Vermont: Any employee that makes $120 or more in tips per month

What is a tipped employee?

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