This question is about tipped minimum wage by state.

What is tip credit against minimum wage?

By Zippia Team - Dec. 7, 2022

A tip credit is the amount of money an employer can claim against the minimum wage when paying an employee. The federal tip credit is $5.12 maximum, but many states have much higher or lower rates.

For example, in California, employers cannot claim a tip credit, while in Maryland, employers can claim up to $8.87 against the minimum wage.

What is tip credit against minimum wage?

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