Federal cash $2.13, max credit $5.12, full MW $7.25
- Appears in
- Short version; How the federal tip credit works
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Tip Credit and the 80/20 Rule by State (2026)
Fact Check: Tip Credit and the 80/20 Rule by State (2026)
Verified July 25, 2026How we fact-check
Summary
We checked 11 article claims against the cited tipped-wage and tip-credit research and its primary sources. All 11 are verified.
All checked article claims ✓ Verified. 0 ✗ Issues.
Federal tip credit
4 claims
Weekly make-up so cash + tips ≥ full MW
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Five notice elements; missing notice forfeits credit
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
OT premium computed from full MW, not $2.13; tip credit on OT hour ≤ straight-time credit
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
80/20 vacatur
2 claims
2021 Dual Jobs Final Rule vacated by Fifth Circuit in Restaurant Law Center; DOL restored dual-jobs text
- Appears in
- What happened to the 80/20 rule
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Residual Fast / Marsh risk and possible state side-work rules (e.g. NJ)
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
No-tip-credit states
2 claims
AK, CA, MN, MT, NV, OR, WA prohibit tip credit; illustrative cash floors match DOL July 1, 2026 table
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
California Labor Code §351; $16.90 general MW 2026; no credit-card fee deduction from tips
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Tip pools
1 claim
Traditional vs nontraditional pool rules; managers may not keep employee tips
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Representative state figures
1 claim
Examples AZ, CO, FL, IL, MA, NE, VA, CT, HI, NY, MI, DC match research / DOL table
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Tax interaction
1 claim
IRC §224 / no tax on tips does not change cash wage or tip-credit conditions
- Source (primary)
- Research: Tipped wage and tip credit
- Verified
- July 25, 2026
Sources
1 unique source cited across the report — click to audit any claim directly against its evidence.
Check our work
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