2020 Indiana Tipped Minimum Wage
The 2020 Indiana Tipped Minimum Wage is $2.13.
Effective 2020-01-01Source: Indiana Minimum Wage Law (Indiana Department of Labor)Verified 2026-09-01
Compared with 2019
Every figure on this page is unchanged from 2019.
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Minimum cash wage | $2.13 | $2.13 | +$0 (+0.0%) |
Who it applies to
Indiana employers and tipped employees covered by the Indiana Minimum Wage Law
What changed this year, and why
Indiana's minimum cash wage for tipped employees remained at $2.13 per hour for 2020. Employers may claim a tip credit and pay tipped workers this reduced cash wage, but if the employee's tips combined with the hourly wage do not equal the full minimum wage, the employer must make up the difference.
Common questions
- What is the minimum cash wage for tipped employees in Indiana in 2020?
- The minimum cash wage for tipped employees in Indiana is $2.13 per hour, provided the employer claims a tip credit.
- What happens if a tipped employee's tips plus the cash wage do not reach the full minimum wage?
- The employer must make up the difference so the employee receives at least the full minimum wage.
Who counts as a tipped employee
Indiana's minimum wage law does not spell out its own definition of who counts as a tipped employee. Instead, because most Indiana employers and employees are covered by the federal Fair Labor Standards Act, Indiana relies on the federal framework. Under the FLSA, an employee is considered a tipped worker if they are someone who customarily and regularly receives tips above a modest monthly threshold in the course of their job. This means that in Indiana, workers in occupations such as servers, bartenders, and bellhops who regularly receive tips as part of their duties are the ones who can be paid on the tipped schedule. If a worker's role does not regularly produce tips, or if the tips received do not meet the federal threshold, the employer must pay the full Indiana minimum wage rather than the reduced tipped-employee cash wage. Workers who are uncertain whether their position qualifies should check whether their job duties customarily involve receiving tips from customers.
Tipped Employees Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit.
Indiana Minimum Wage Law (Indiana Department of Labor)
What a tip credit is, and the cash wage underneath it
Under Indiana's minimum wage law, workers who are paid on the tipped-employee schedule must receive at least $2.13 per hour in direct cash wages from their employer when the employer is taking a tip credit. A tip credit is the amount of an employee's tips that the employer is allowed to count toward satisfying the state's full minimum wage obligation. In Indiana, this means the employer can credit the worker's tips against the gap between the $2.13 cash wage and the full minimum wage the worker is owed. The employer is still responsible for ensuring that, over the course of each pay period, the cash wages paid plus the tips actually received add up to at least the full minimum wage for every hour worked. If they do not, the employer must pay the shortfall directly. Workers whose tips vary from week to week should keep their own records so they can verify that the $2.13 floor is being respected and that the employer is making up any shortfall when tips are light.
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit.
Indiana Minimum Wage Law (Indiana Department of Labor)
When the tips do not get you to the minimum wage
Indiana's tipped-employee wage rule does not assume that a worker's tips will always bring their pay up to the full minimum wage. The Indiana Minimum Wage Law states that if the employee's tips combined with the hourly cash wage the employer pays do not equal the full minimum wage for all hours worked, the employer must make up the difference. In practice this means that Indiana employers using the tip credit must check each pay period whether a tipped worker's total of tips plus the cash wages paid reached the state minimum wage. If tips in a given week were lower than expected — due to slow business, few customers, or other reasons — the employer cannot leave the worker short. Instead, the employer must pay the gap out of its own funds so that the worker receives at least the full minimum wage for every hour worked that week. This protection applies to all Indiana workers covered by the state minimum wage law who are paid on the tipped schedule.
If the employee’s tips combined with the hourly wage do not equal the minimum wage, the employer must make up the difference.
Indiana Minimum Wage Law (Indiana Department of Labor)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Indiana Minimum Wage Law (Indiana Department of Labor)
- Minimum cash wage
Generally, employers must pay tipped employees at least $2.13 per hour if the employer claims a tip credit.
Other years
Every Indiana Tipped Minimum Wage year · Tipped Minimum Wage in every state