72 verifiable claims checked across the federal tip-credit framework at 29 USC §§ 203(m), 203(t), 206, 207, 216, and 255; implementing regulations at 29 CFR Part 531 Subpart D (§§ 531.50–531.60) and § 516.28; DOL Fact Sheet #15 and the DOL tip-regulations history page; the Fifth Circuit vacatur in Restaurant Law Center v. U.S. Department of Labor, 120 F.4th 163 (5th Cir. 2024) (superseding 115 F.4th 396); residual circuit authority in Fast v. Applebee's International, Inc., 638 F.3d 872 (8th Cir. 2011) and Marsh v. J. Alexander's LLC, 905 F.3d 610 (9th Cir. 2018) (en banc); Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024); the 2018 Consolidated Appropriations Act amendments to § 203(m)(2)(B); California Labor Code § 351 and DIR guidance; New York DOL regional hospitality rates; and the DOL WHD Minimum Wages for Tipped Employees table revised July 1, 2026 (all 50 states + DC + selected territories, including the seven no-tip-credit jurisdictions).
72 claims checked: 72 ✓ Verified, zero ⚠ Partial, zero ✗ Issue, zero 🕐 Outdated, zero ⓘ Unverifiable.
Dollar amounts and state cash floors for the table are anchored to the DOL WHD July 1, 2026 compilation. The 80/20/30 posture is anchored to the Fifth Circuit opinion PDF on ca5.uscourts.gov plus DOL's own regulatory-history summary. Tax-deduction cross-references are scoped as non-wage rules and point to the sibling research; they do not re-litigate IRC § 224 here.
1 claim
Federal minimum cash wage for tip-credited employees is $2.13/hour; maximum tip credit is $5.12 against the $7.25 federal minimum wage
Fact Sheet #15 states $2.13 cash wage, $7.25 MW, $5.12 maximum tip credit. 29 CFR § 531.50 ties the cash floor to the August 20, 1996 amount ($2.13).
3 claims
A tipped employee under the FLSA is one engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips (29 USC § 203(t))
Employers, managers, and supervisors may not keep employee tips regardless of whether a tip credit is taken (29 USC § 203(m)(2)(B); 2018 CAA amendments)
FLSA limitations period is generally 2 years, 3 years if willful (29 USC § 255(a))
1 claim
Employer must make up any weekly shortfall so cash wages + tips equal at least the full minimum wage
2 claims
Five required tip-credit notice elements before the credit applies; oral or written notice permitted; missing notice forfeits the credit
Fact Sheet #15 lists the five disclosure items and states oral or written notice is acceptable; failure to inform means no § 3(m)(2)(A) tip credit.
Overtime for tip-credited employees is calculated using the full minimum wage (not the $2.13 cash rate); tip credit on an OT hour may not exceed the straight-time tip credit
1 claim
Traditional tip pools (when tip credit is taken) limited to customarily tipped occupations; nontraditional pools may include cooks/dishwashers only if full cash MW paid and no tip credit taken
1 claim
Compulsory service charges are not tips; distributed service-charge amounts are wages
1 claim
Federal law permits deducting the credit-card company's percentage fee from credit-card tips, subject to the full-MW floor; some states (e.g., California) prohibit that deduction
1 claim
DOL 2021 Dual Jobs Final Rule (86 Fed. Reg. 60114; effective Dec. 28, 2021) imposed 20% workweek and 30 continuous-minute limits on directly supporting work for tip credit
4 claims
Restaurant Law Center v. DOL, No. 23-50562 (5th Cir. Aug. 23, 2024), vacated the Final Rule as contrary to the FLSA and arbitrary and capricious; superseding opinion at 120 F.4th 163 (Oct. 29, 2024)
Opinion PDF filed Aug. 23, 2024 holds the Final Rule fails APA twice and vacates it. DOL page cites 115 F.4th 396 superseded on reh'g 120 F.4th 163 (Oct. 29, 2024).
Fast v. Applebee's International, Inc., 638 F.3d 872 (8th Cir. 2011), deferred to DOL FOH 80/20 guidance
Marsh v. J. Alexander's LLC, 905 F.3d 610 (9th Cir. 2018) (en banc), applied deference to dual-jobs / 80/20 sub-regulatory guidance
Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024), overruled Chevron deference; courts may not defer to agency interpretations solely because a statute is ambiguous
1 claim
DOL restored pre-2021 dual-jobs regulation text at 29 CFR § 531.56(e) via December 2024 technical rule
DOL tip-regulations page item 4: technical rule announced Dec. 16, 2024 to restore original dual-jobs language.
1 claim
Current Fact Sheet #15 dual-jobs description uses occupation contrast (maintenance + server) and related side duties without restating 20%/30-minute caps
1 claim
Seven states prohibit tip credit: Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington (full cash state minimum wage before tips)
DOL table groups these jurisdictions under "State requires employers to pay tipped employees full state minimum wage before tips" (July 1, 2026 revision). Cash floors: AK $14.00; CA $16.90; MN $11.41; MT $10.85 (>$110k sales) / $4.00 (small); NV $12.00; OR regional $15.55 / $16.80 / $14.55; WA $17.13.
1 claim
California Labor Code § 351 prohibits using tips as a credit against wages; employers must pay full minimum wage plus tips; credit-card fees may not be deducted from tips
2 claims
California general minimum wage is $16.90/hour effective January 1, 2026
New York hospitality tipped rates vary by region and food-service vs. service category; NYC / LI / Westchester full MW $17.00; remainder of state $16.00 (as of 1/1/2026)
NY DOL page lists tipped food-service cash $11.35 / tip credit $5.65 (NYC, LI, Westchester) and $10.70 / $5.30 (remainder) as of 01/01/2026.
5 claims
DOL WHD tipped-wage table revised July 1, 2026 is the source for federal and state cash wage / tip credit figures in the research table
Federal-floor tip-credit states (cash $2.13) include Alabama, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas, Utah, Wyoming, and others listed in the DOL "same as FLSA" group
Hawaii tip credit is conditional — permissible only if employer wages + tips are at least $7.00 more than the applicable minimum wage; cash wage $14.75; credit $1.25 against $16.00 MW
Connecticut uses occupation-specific tipped rates (hotel/restaurant cash $6.38; bartenders cash $8.23) against $16.94 full MW
District of Columbia cash wage is $10.30 against $18.40 full MW as of July 1, 2026 (56% of standard minimum wage per DOL footnote)
Research correctly treats DC as still allowing a tip credit at the current cash floor rather than claiming full tip-credit elimination as of mid-2026.
1 claim
Representative higher-cash-floor tip-credit states match DOL table (examples)
2 claims
Florida full minimum wage scheduled to reach $15.00 on September 30, 2026
Michigan minimum direct cash wage for tipped employees is scheduled to increase annually until it reaches 50% of the state minimum wage in 2031
DOL footnote 15 on the July 1, 2026 table.
1 claim
IRC § 224 / "no tax on tips" is an individual income-tax deduction and does not change FLSA cash wages, FICA on tips, or § 203(m) tip-credit conditions
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