South Carolina tip pooling laws & tipped minimum wage
In South 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 South Carolina labor department. Not legal advice.
What's specific to South Carolina
South Carolina has no state minimum wage law; federal FLSA rules apply directly.
South Carolina has no minimum-wage law of its own
South Carolina is one of only a handful of states with no state minimum-wage statute at all. Instead of setting its own floor, the state leaves wages entirely to the federal Fair Labor Standards Act, so covered employers pay at least $7.25 an hour and may pay a tipped cash wage of $2.13, claiming a tip credit of up to $5.12 when tips make up the rest.
Because there is no state wage law, there is also no state agency setting a higher tipped rate. Your protections come from the federal rules, and the U.S. Department of Labor’s Wage and Hour Division — not a state labor department — is where a tipped worker in South Carolina takes an unpaid-wages complaint.
No South Carolina city can raise the wage above the federal floor
Even where local support for a higher wage exists, South Carolina Code Section 6-1-130 bars any county or municipality from setting a minimum wage above the federal rate. That means the $2.13 tipped cash wage and the $7.25 floor apply the same way in Charleston, Columbia, and Greenville as everywhere else in the state.
The one narrow exception is that a local government may still agree to higher pay in a contract it is a party to; it simply cannot impose a wage mandate on private employers generally.
Tip pooling in South Carolina
South 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 South 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.
South Carolina tip law FAQs
What is the tipped minimum wage in South Carolina?
Employers in South 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 South Carolina?
South 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 South Carolina?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including South Carolina. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Does South Carolina have its own tipped minimum wage?
No. South Carolina has no state minimum-wage law, so the federal tipped cash wage of $2.13, the $5.12 tip credit, and the $7.25 combined floor apply. There is no separate state rate.
Can a South Carolina city set a higher wage for tipped workers?
No. South Carolina Code Section 6-1-130 prohibits counties and cities from requiring private employers to pay above the federal minimum wage, so the tipped cash wage stays $2.13 statewide.