North Dakota tip pooling laws & tipped minimum wage
In North Dakota, employers can pay tipped workers $4.86/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 | $4.86/hr |
| Maximum tip credit | $2.39/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 Dakota labor department. Not legal advice.
What's specific to North Dakota
North Dakota requires tipped workers to receive at least 67% of the minimum wage in cash.
North Dakota requires your tipped cash wage to be at least 67% of the minimum
North Dakota sets its minimum wage at the federal $7.25 an hour. Unlike states that follow the federal $2.13 tipped floor, North Dakota caps the tip credit at 33% of the minimum wage — which means your cash wage must be at least 67% of the minimum.
In practice that puts the tipped cash wage at $4.86 an hour, with a maximum tip credit of $2.39, well above the federal $2.13. Your tips still have to bring you to the full $7.25.
A higher cash floor, and your employer still covers any shortfall
Because North Dakota ties the cash wage to a percentage of the minimum rather than a flat dollar figure, tipped workers here start from a higher guaranteed base than in most states. You are a tipped employee for this purpose if you customarily and regularly receive more than $30 a month in tips.
The tip credit is not a way around the minimum wage. In any period where your $4.86 cash wage plus tips do not average at least $7.25 an hour, your employer must pay the difference. If you believe you were underpaid, you can file a claim with the North Dakota Department of Labor and Human Rights.
Tip pooling in North Dakota
North Dakota follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $4.86/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 Dakota 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 Dakota tip law FAQs
What is the tipped minimum wage in North Dakota?
Employers in North Dakota may pay tipped employees a cash wage of $4.86/hr and claim a tip credit of up to $2.39/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 Dakota?
North Dakota follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $4.86/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 Dakota?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including North Dakota. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Why is North Dakota’s tipped cash wage higher than the federal $2.13?
North Dakota caps the tip credit at 33% of the minimum wage, so the cash wage must be at least 67% of it. At a $7.25 minimum that works out to $4.86 an hour, with a maximum tip credit of $2.39.
Who counts as a tipped employee in North Dakota?
A tipped employee is a service worker who customarily and regularly receives more than $30 a month in tips. For those workers, the $4.86 cash wage plus tips must reach at least $7.25 an hour, and the employer owes any shortfall.