2018 Rhode Island Tipped Minimum Wage
The 2018 Rhode Island Tipped Minimum Wage is $3.89.
Effective 2018-01-01Source: A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)Verified 2026-09-01
Compared with 2017
Every figure on this page is unchanged from 2017.
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Minimum cash wage | $3.89 | $3.89 | +$0 (+0.0%) |
Who it applies to
Rhode Island employers who pay tipped workers, including wait staff
What changed this year, and why
Rhode Island's minimum cash wage for tipped employees in 2018
Common questions
- How is the tipped minimum wage calculated in Rhode Island?
- Employers must pay a minimum cash wage of $3.89 per hour, and tips must bring the employee's total hourly earnings to at least the full minimum wage for all hours worked.
- Was the tipped minimum cash wage different in 2017?
- Yes. The minimum cash wage was also $3.89 in 2017.
Who counts as a tipped employee
Rhode Island defines wait staff as tipped employees. According to state law, wait staff must be paid a cash wage of at least $3.89 per hour, and their tips must bring their total compensation to the full minimum wage (which was $14.00 as of January 1, 2024) for all hours worked. This means that if you work as a server, bartender, or other tipped position in Rhode Island, your employer pays you the reduced cash wage, but you must actually receive enough tips to reach the full minimum wage. If your tips plus the cash wage fall short of the minimum wage for any workweek, your employer must make up the difference. The state recognizes that tipped workers are those who customarily and regularly receive gratuities as part of their compensation in occupations like food service.
WHAT IS THE MINIMUM WAGE FOR WAIT STAFF? Commencing January 1, 2017, wait staff must be paid at least $3.89 per hour and the number of tips received must bring this amount to $14.00 as of January 1, 2024, for all hours worked.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
What a tip credit is, and the cash wage underneath it
In Rhode Island, employers may pay tipped employees a reduced cash wage of $3.89 per hour and claim a tip credit against the full minimum wage. The tip credit equals the difference between the cash wage paid and the full minimum wage. For 2018, this means employers can credit up to 50% of the applicable minimum wage toward their wage obligation using the tips employees receive. However, Rhode Island law requires that the employer's minimum contribution toward service employees' wages may exceed what federal law requires under the Fair Labor Standards Act. When both state and federal law apply, the higher or more protective standard for employees takes precedence. Employers must maintain signed statements from employees certifying the amount of gratuities received as part of their permanent payroll records.
The amount of gratuities credited may not exceed 50% of the applicable minimum wage. From time to time the mandated employer’s minimum contribution toward service employee’s wages may exceed the amount required by the provisions of the Fair Labor Standards Act. Where there is coverage under both state and federal law the higher or more restrictive standard takes precedence.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
When the tips do not get you to the minimum wage
In Rhode Island, if a tipped employee's cash wage of $3.89 per hour plus their tips do not add up to the full minimum wage for a given workweek, the employer must make up the difference. This guarantee ensures that tipped workers always receive at least the full minimum wage for every hour worked. Rhode Island law requires employers to keep signed statements from employees certifying the amount of tips received each week, and these records must be maintained as part of permanent payroll files. If a worker disagrees with how gratuities were credited against their wages, they have the right to request a hearing in the Division of Labor Standards. This protection applies to wait staff and bus persons in any week when wages are computed.
The employer must have received and kept as part of permanent payroll records for that week a statement signed by the employee certifying the amount of gratuities, as credited, has been received.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
The notice an employer owes you before it takes the credit
Rhode Island law requires employers to maintain specific records when claiming a tip credit. The employer must have received and kept as part of permanent payroll records a statement signed by the employee certifying the amount of gratuities that were credited as wages. This signed statement serves as evidence that the tips claimed by the employer were actually received by the worker. The form must be filled out by the worker, who must specify the amount of tips received and sign it. Before an employer can take a tip credit and pay the reduced cash wage of $3.89 per hour, the employee must understand and document their tip income. Workers who sign these statements retain the right to request a hearing in the Division of Labor Standards if they dispute the gratuity calculations or believe the credit was improperly applied.
The employer must have received and kept as part of permanent payroll records for that week a statement signed by the employee certifying the amount of gratuities, as credited, has been received.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
When state law gives more than the federal rule
Rhode Island law establishes specific rules for tip credits that may be more protective than federal requirements. The amount of gratuities credited may not exceed 50% of the applicable minimum wage. The state recognizes that from time to time, the mandated employer's minimum contribution toward service employee's wages may exceed the amount required by the provisions of the Fair Labor Standards Act. Where there is coverage under both state and federal law, the higher or more restrictive standard takes precedence. This means Rhode Island employers must comply with whichever rule provides greater protection to employees - whether that comes from state or federal law. For 2018, the minimum cash wage for tipped employees in Rhode Island is $3.89 per hour, and employers must ensure workers receive at least the full minimum wage when combining cash wages and tips.
The amount of gratuities credited may not exceed 50% of the applicable minimum wage. From time to time the mandated employer’s minimum contribution toward service employee’s wages may exceed the amount required by the provisions of the Fair Labor Standards Act. Where there is coverage under both state and federal law the higher or more restrictive standard takes precedence.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
Your employer, your manager and your supervisor may not keep your tips
Rhode Island law defines gratuities as voluntary monetary compensation received by the employee for services rendered. This means tips belong to the employee, not the employer. While the state law focuses on how employers may credit tips toward minimum wage obligations, the fundamental principle is that gratuities are the employee's compensation. Under Rhode Island's tip credit system, employers must pay wait staff and bus persons at least $3.89 per hour in cash wages, and the tips received must bring total compensation to the full minimum wage. The employer may only credit tips as part of wages under specific conditions, including maintaining signed employee certifications of gratuities received. This framework ensures that tips remain the property of the workers who earn them through their service.
Gratuities shall mean voluntary monetary compensation received by the employee for services rendered.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
Which tip pools you can be made to join
In Rhode Island in 2018, an employer could require a tipped employee to participate in a tip pool, but the pool had to be limited to employees in occupations in which they customarily and regularly receive tips. This meant that only workers who themselves typically earned tips — such as servers, bartenders, or bussers — could share in the pooled tips. An employer could not force tipped workers to share their tips with back-of-house staff like cooks or dishwashers who do not ordinarily receive tips from customers. This restriction protected tipped employees from having their tip income diluted by being shared with non-tipped workers. Rhode Island's minimum cash wage for tipped workers that year was $3.89, which was well below the standard minimum wage, so tips made up the difference between the cash wage and the full minimum wage. The tip-pooling rule ensured that those tips remained among workers who relied on them as a regular part of their earnings.
Gratuities shall mean voluntary monetary compensation received by the employee for services rendered. An employee working in an occupation where it is customary to receive gratuities must be paid the stated minimum rates. However, in any week when the wages for such an employee are computed, the employer may credit tips so received as part of the wages under the following conditions: The amount of gratuities credited may not exceed 50% of the applicable minimum wage.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
Doing two jobs for one employer
Rhode Island law addresses situations where employees may work in different roles for the same employer. An employee working in an occupation where it is customary to receive gratuities must be paid the stated minimum rates. However, this applies specifically to tipped occupations like wait staff and bus persons. When a worker performs both tipped and non-tipped duties, the tip credit rules only apply to the hours spent in occupations where receiving gratuities is customary. For time spent in non-tipped work, the employer must pay the full minimum wage without claiming any tip credit. The cash wage of $3.89 per hour applies only to work as a wait staff member or bus person. Employers must track hours carefully to ensure proper compensation for each type of work performed. The state requires signed employee certifications of gratuities received, filed with payroll records, to document tip credit claims.
An employee working in an occupation where it is customary to receive gratuities must be paid the stated minimum rates.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
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.
A Guidebook to Rhode Island's Wage and Workplace Laws (Rev. 12/2024) (Rhode Island Department of Labor and Training)
- Minimum cash wage
Commencing January 1, 2017, wait staff must be paid at least $3.89 per hour and the number of tips received must bring this amount to $14.00 as of January 1, 2024, for all hours worked.
Other years
Every Rhode Island Tipped Minimum Wage year · Tipped Minimum Wage in every state