CashoutTipped minimum wage / Wisconsin
Wisconsin tipped minimum wage
What employers must pay
In Wisconsin, the minimum wage is $7.25 an hour. An employer can pay a tipped employee as little as $2.33 an hour in cash, as long as tips bring the total to at least $7.25. The difference, $4.92, is the tip credit.
Opportunity employees (under 20, in their first 90 days with an employer) may be paid $5.90, or $2.13 cash if tipped.
Who counts as a tipped employee: anyone who gets tips (Wisconsin sets no dollar amount), but to pay you the tipped rate your employer needs a tip statement you sign each pay period, on paper or electronically.
If your cash wage plus tips comes up short of $7.25 an hour in a workweek, your employer has to make up the difference.
What changes next
No change to the Wisconsin minimum wage is scheduled. Wisconsin's rates haven't changed since July 24, 2009, and the state has not announced any increase.
Tip pooling and service charges
Wisconsin has no tip pooling law of its own, so federal rules apply: if your employer takes a tip credit, a required pool may include only workers who usually get tips. Employers, managers and supervisors may not keep tips or take from the pool.
Overtime
Overtime is 1.5 times the regular rate after 40 hours a week; Wisconsin has no daily overtime for adults. For tipped employees, overtime is figured on the full $7.25 minimum wage, not the $2.33 cash wage (federal rule).
Taxes on your tips
Wisconsin taxes wage income, and tips are wages, so its income tax applies to your tips. Federal income tax, Social Security and Medicare still apply. The federal tip deduction can cut the income tax part: see how the No Tax on Tips deduction works.
Check a week's pay
Enter one workweek to see whether your cash wage plus tips reached Wisconsin's minimum of $7.25 an hour.
You reached the minimum this week.
You came up short. Your employer owes you at least
If you are underpaid
Start by comparing your pay stubs with your own record of hours and tips. If the numbers don't add up, you can file a complaint with the Wisconsin Department of Workforce Development, Equal Rights Division, Labor Standards: how to file. You can also call the U.S. Department of Labor, Wage and Hour Division, at 1-866-487-9243.
