What is the current minimum wage? How do I calculate the tip credit?
The current federal minimum wage is $7.25 per hour. However, individual states may have higher minimum wages. The federal tipped employee wage is $2.13 as long as the employee will receive tips that add up to a $7.25 per hour minimum. You can find out more at www.dol.gov/esa/whd/flsa/. Some states have a minimum wage higher than the federal government’s. There is a chart on our website that gives that information.
