Ohio tip pooling laws & tipped minimum wage
In Ohio, employers can pay tipped workers $5.50/hr as long as tips bring them to the $11.00 minimum — here's how that works and who can legally share your tips.
| Regular minimum wage | $11.00/hr |
| Minimum cash wage for tipped workers | $5.50/hr |
| Maximum tip credit | $5.50/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 Ohio labor department. Not legal advice.
What's specific to Ohio
Ohio’s tipped cash wage is half the state minimum, which adjusts annually for inflation. The state rate applies to businesses grossing over about $405,000/yr; smaller businesses follow the federal rate.
Ohio raises its minimum each January — but only for larger employers
Ohio’s minimum wage is tied to inflation and rises every January 1. For 2026 it is $11.00 an hour, and the tipped cash wage is exactly half of that, $5.50 an hour, with the employer claiming a tip credit of up to $5.50 as long as your tips bring you to $11.00.
This state rate does not reach every business. It applies to employers whose annual gross receipts are more than $405,000 (the threshold itself climbs with inflation each year). If you work for a smaller employer that grosses at or below that figure, the rate that applies to you is the federal minimum of $7.25, with a $2.13 tipped cash wage.
Which rate you get depends on your employer’s size
Because of the gross-receipts line, two tipped workers in Ohio can be on different legal minimums. A server at a large restaurant group is owed the $5.50 cash wage and an $11.00 floor after tips; a server at a very small independent business may only be owed the federal $2.13 cash wage and a $7.25 floor.
If you are unsure which applies to you, the size of your employer’s total annual sales — not your individual location — is what decides it. The Ohio Department of Commerce, Bureau of Wage and Hour Administration, handles questions and complaints.
Tip pooling in Ohio
Ohio follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $5.50/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 Ohio 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.
Ohio tip law FAQs
What is the tipped minimum wage in Ohio?
Employers in Ohio may pay tipped employees a cash wage of $5.50/hr and claim a tip credit of up to $5.50/hr toward the $11.00 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 Ohio?
Ohio follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $5.50/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 Ohio?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Ohio. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Why is Ohio’s tipped wage $5.50 instead of the federal $2.13?
Ohio sets its tipped cash wage at half of the state minimum wage, and the 2026 state minimum is $11.00, so half is $5.50. This applies to employers grossing more than $405,000 a year; smaller employers follow the federal $2.13 tipped wage.
Does Ohio’s minimum wage change every year?
Yes. Ohio adjusts its minimum wage for inflation every January 1, so both the $11.00 base and the $5.50 tipped wage can rise the following year. The $405,000 gross-receipts threshold is also adjusted annually.