2016 Idaho Tipped Minimum Wage

What a tip credit is, and the cash wage underneath it

In Idaho, the state minimum wage is $7.25 per hour, but an employer may pay a tipped employee a lower direct cash wage of $3.35 per hour. The tip credit is the difference between these two amounts: the employer is allowed to count a portion of the worker's tips toward satisfying the full minimum wage, rather than paying the entire obligation in cash. For Idaho workers in 2016, this means the employer must hand the worker at least $3.35 per hour in direct wages. The remaining gap between $3.35 and the full minimum wage is treated as coming from the employee's tips. If in any workweek the worker's tips do not cover that gap — so that cash wage plus tips together fall short of $7.25 per hour — the employer must make up the difference out of pocket. The employee always keeps their tips; the tip credit simply allows the employer to satisfy part of the minimum-wage obligation with those tips rather than with additional cash. Idaho's statute (Idaho Code, Section 44-1502) sets only the cash wage figure; the federal Fair Labor Standards Act supplies the definition of who qualifies as a tipped employee.

The current Idaho state minimum wage is $7.25 per hour. The minimum wage for a tipped employee is $3.35 per hour.

Frequently Asked Questions on labor laws (Idaho Department of Labor)