North Carolina tip pooling laws & tipped minimum wage
In North Carolina, employers can pay tipped workers $2.13/hr as long as tips bring them to the $7.25 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $7.25/hr |
| Minimum cash wage for tipped workers | $2.13/hr |
| Maximum tip credit | $5.12/hr |
| 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 North Carolina labor department. Not legal advice.
North Carolina follows the federal floor and blocks cities from raising it
North Carolina sets its minimum wage at the federal $7.25 an hour. Tipped workers can be paid a cash wage of $2.13, with the employer claiming a tip credit of up to $5.12, as long as your tips bring the total to at least $7.25.
What sets North Carolina apart is that state law preempts local minimum-wage ordinances. Under Section 95-25.1 of the North Carolina General Statutes, no city or county can require employers to pay above the state minimum, so the tipped cash wage stays $2.13 everywhere in the state.
The tip credit comes with conditions — and a guarantee
To pay the $2.13 cash wage, your employer has to meet real requirements: you must be told in advance that a tip credit is being taken, you must keep all the tips you earn, and your employer must maintain accurate tip records certified by you.
Even then, the tip credit is not permission to pay below the minimum. In any workweek where your $2.13 cash wage plus tips do not average at least $7.25 an hour, your employer must make up the difference in that paycheck. If they do not, you can file a claim with the North Carolina Department of Labor.
Tip pooling in North Carolina
North Carolina follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
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.
What this means for your tip-out
Because part of your legal wage in North Carolina comes from tips, the employer's tip credit assumes those tips reached you. 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.
North Carolina tip law FAQs
What is the tipped minimum wage in North Carolina?
Employers in North Carolina may pay tipped employees a cash wage of $2.13/hr and claim a tip credit of up to $5.12/hr toward the $7.25 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.
Is mandatory tip pooling legal in North Carolina?
North Carolina follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.13/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.
Can my manager take a share of the tip pool in North Carolina?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including North Carolina. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Can a city or county in North Carolina set a higher tipped minimum wage?
No. North Carolina General Statutes Section 95-25.1 preempts local governments from requiring employers to pay above the state minimum wage, so the $2.13 tipped cash wage and $7.25 floor apply statewide.
What must my employer do before paying me the $2.13 tipped rate?
Your employer must notify you in advance that a tip credit will be taken, let you keep all of your tips, and maintain accurate tip records certified by you. If your tips plus cash wage do not reach $7.25 an hour, the employer owes the difference.