Minnesota tip pooling laws & tipped minimum wage
Minnesota is one of only seven states that ban the tip credit: every tipped worker gets the full minimum wage in cash, and tips are paid on top.
| Regular minimum wage | $11.41/hr |
| Minimum cash wage for tipped workers | $11.41/hr (full minimum) |
| Maximum tip credit | Not allowed |
| Tips belong to | Employees — always |
A tip credit lets an employer count your tips toward the minimum wage it owes you. Rates reviewed July 2026. Rates change — confirm with the Minnesota labor department. Not legal advice.
What's specific to Minnesota
Minnesota bans the tip credit AND bans employer-mandated tip pooling (Minn. Stat. § 177.24 subd. 3) — an employer cannot require employees to share tips. Any pooling must be genuinely voluntary among employees.
Minnesota pays tipped workers the full minimum — tips are on top
Minnesota does not allow a tip credit. Every worker, tipped or not, must be paid the full state minimum wage in cash — $11.41 an hour as of January 1, 2026 — before any tips are counted. Your tips are yours on top of that wage, not a way for your employer to pay you less.
Two cities set higher minimums that also bar any tip credit: Minneapolis and St. Paul both run their own ordinances above the state rate, so if you work within those city limits your cash minimum is higher than $11.41.
Your employer cannot force you to share your tips
Minnesota has an unusual rule: mandatory tip pooling is illegal. Under state law, no employer may require you to contribute or share your tips with the employer or with other employees, or to pay into any tip pool.
Sharing tips is allowed only when you choose it. You may voluntarily agree to split tips with coworkers, but your employer cannot make that a condition of the job or run a mandatory pool on your behalf.
Tips belong to you
Because there is no tip credit, your hourly wage never depends on how much you make in tips. If your employer is deducting from your tips, keeping a share, or requiring you to pay into a pool, you can raise it with the Minnesota Department of Labor and Industry.
Tip pooling in Minnesota
Employer-mandated tip pooling is illegal in Minnesota. Employees may share tips only by their own voluntary agreement, without employer coercion. Two narrow cases are not treated as employer-mandated pooling: dividing a tip among several direct-service employees who together served the same customers (as at a banquet), and a tip jar shared among direct-service staff on the same shift.
One federal rule applies everywhere: managers and supervisors can never take from a tip pool. Separately, credit card processing fees may only be deducted from tips where state law allows it — and several no-tip-credit states restrict that practice too.
What this means for your tip-out
Because Minnesota pays the full minimum wage before tips, your base pay does not depend on how the pool splits. Use the tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Minnesota tip law FAQs
What is the tipped minimum wage in Minnesota?
Minnesota does not allow a tip credit, so tipped employees must be paid the full minimum wage of $11.41/hr in cash. All tips come on top of that wage.
Is mandatory tip pooling legal in Minnesota?
Employer-mandated tip pooling is illegal in Minnesota. Employees may share tips only by their own voluntary agreement, without employer coercion. Two narrow cases are not treated as employer-mandated pooling: dividing a tip among several direct-service employees who together served the same customers (as at a banquet), and a tip jar shared among direct-service staff on the same shift.
Can my manager take a share of the tip pool in Minnesota?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Minnesota. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Can my employer in Minnesota make me pool or share my tips?
No. Minnesota law prohibits mandatory tip pooling. Your employer cannot require you to share tips or pay into a pool. You may share tips voluntarily, but it cannot be forced.
Does Minnesota have a lower tipped minimum wage?
No. Minnesota bans the tip credit, so tipped workers must be paid the full minimum wage — $11.41 an hour in 2026, or more in Minneapolis and St. Paul — with tips paid on top.