Federal cash wage $2.13, max tip credit $5.12, full MW $7.25
- Source (primary)
- https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
- Source (secondary)
- https://www.law.cornell.edu/uscode/text/29/203
- Verified
- July 25, 2026
Tip Credit Calculator
Fact Check: Tip Credit Calculator
Verified July 25, 2026How we fact-check
Summary
Checked federal tip-credit constants, make-up arithmetic, seven no-tip-credit states, representative state cash floors from the DOL July 1, 2026 table, the 80/20 vacatur disclosure, and stated non-modeled limits. All load-bearing claims verified against research tipped-wage-and-tip-credit and its primary sources.
Result: all checked claims ✓ Verified. 0 ✗ Issues.
Statutory / agency guidance
2 claims
Tip credit claimed cannot exceed tips actually received
- Source (primary)
- https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
- Verified
- July 25, 2026
Agency guidance
1 claim
Employer must make up weekly shortfall so cash + tips ≥ full MW
- Source (primary)
- https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
- Verified
- July 25, 2026
Arithmetic
1 claim
Slow federal week $2.13 cash, $50 tips, 40h → makeup $154.80
- Source (primary)
- https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
- Verified
- July 25, 2026
- Notes
$7.25×40 = $290; $2.13×40 = $85.20; $290 − $85.20 − $50 = $154.80.
Arithmetic + state rule
1 claim
California $2.13 cash, $200 tips, 40h → makeup $390.80 and cash-floor violation
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
- Notes
$16.90×40 = $676; $676 − $85.20 − $200 = $390.80; tip credit claimed $0.
Agency compilation
1 claim
Seven states prohibit tip credit — AK, CA, MN, MT, NV, OR, WA
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
State statute / agency
1 claim
California general MW $16.90 (2026); no tip credit under Labor Code §351
- Source (primary)
- https://www.dir.ca.gov/dlse/minimum_wage.htm
- Source (secondary)
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=351.
- Verified
- July 25, 2026
Representative tip-credit states (DOL July 1, 2026)
5 claims
Arizona $15.15 MW / $3.00 credit / $12.15 cash
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
Illinois $15.00 / $6.00 (40%) / $9.00 cash
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
New York NYC food-service model $17.00 / $5.65 credit / $11.35 cash (as of 1/1/2026)
- Source (primary)
- https://dol.ny.gov/minimum-wage
- Verified
- July 25, 2026
Hawaii conditional $16.00 / $1.25 credit / $14.75 cash
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
District of Columbia $18.40 / $8.10 credit / $10.30 cash as of July 1, 2026
- Source (primary)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- Verified
- July 25, 2026
Case holding / scope honesty
1 claim
2021 Dual Jobs Final Rule vacated; tool does not implement 80/20/30 tracking
- Source (primary)
- https://www.ca5.uscourts.gov/opinions/pub/23/23-50562-CV0.pdf
- Source (secondary)
- https://www.dol.gov/agencies/whd/flsa/tips
- Verified
- July 25, 2026
Sources
8 unique sources cited across the report — click to audit any claim directly against its evidence.
- 1.https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
- 2.https://www.law.cornell.edu/uscode/text/29/203
- 3.https://www.dol.gov/agencies/whd/state/minimum-wage/tipped
- 4.https://www.dir.ca.gov/dlse/minimum_wage.htm
- 5.https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=351.
- 6.https://dol.ny.gov/minimum-wage
- 7.https://www.ca5.uscourts.gov/opinions/pub/23/23-50562-CV0.pdf
- 8.https://www.dol.gov/agencies/whd/flsa/tips
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