Wages - Employees receiving tips
The minimum wage for employees receiving gratuities and tips is currently $10.45 per hour. This rate has been in effect since May 1, 2020.
An employer must pay those workers who receive gratuities and tips a wage equal to or greater than the minimum rate in effect.
What are tips and gratuities?
A tip or gratuity is an amount that a customer freely chooses to remit in exchange for a service. The amount can be included in the service charges added to the bill.
The tip or gratuity is added to the wage paid by the employer.
Employers who collect the tip are required to remit it, in full, to the worker who provided the customer with the service.
Who can be paid the wage rate intended for workers who receive tips and gratuities?
An employee is considered a worker who receives tips and gratuities if he or she usually receives tips and works full-time or part-time in:
- a restaurant (except for fast-food restaurants)
- an enterprise that sells, delivers or serves meals to be eaten off the premises
- a bar or an event where alcoholic beverages are sold on the premises
- a train or a ship where food or alcoholic beverages are sold
- an establishment that offers tourist accommodations, including a campground.
Workers who receive tips and gratuities can take part in a tip sharing arrangement.