USAUS Tip Credit & Minimum Wage (FLSA)Finance & SalaryUS Tipped Employee Minimum Wage & Tip Credit (FLSA) Calculator
Calculate employer tip credit ($5.12 max federal), direct cash wage obligations ($2.13 federal base), and mandatory employer make-up pay if employee tips fall below standard minimum wage ($7.25+).
Calculator Inputs
Live Real-TimeEffective Total Hourly Rate Earned (Wages + Tips)
Total Gross Earnings for Pay Period
524.55 $/hr
Employer Make-Up Pay Owed (if tips below minimum)
0 $/hr
Detailed Calculation Breakdown
Calculation Methodology
Total Hourly Earned = Direct Cash Wage + (Total Tips Earned / Hours Worked). Employer Make-Up Owed = max(0, Minimum Wage - Total Hourly Earned) * Hours Worked.
Important Legal & Educational Disclaimer
Under FLSA Section 3(m), if an employee's direct cash wage plus tips does not equal at least the statutory minimum wage per hour, the employer must make up the difference.
This calculator is designed for educational and informational purposes only based on public statutory frameworks. The outputs do not constitute binding financial, tax, or legal advice. We assume no liability for decisions made based on these estimations. Always verify with the relevant official authorities or a certified professional advisor.
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