Utah tip pooling laws & tipped minimum wage
In Utah, 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 Utah labor department. Not legal advice.
Utah pins its minimum wage to the federal rate by law
Utah does have a state minimum-wage rule, but its own law keeps it from rising above the federal floor. Under Utah Code Section 34-40-103, the Labor Commission may set the minimum wage by rule but may not set it higher than the federal minimum. The result is $7.25 an hour, with a tipped cash wage of $2.13 and a tip credit of up to $5.12.
So Utah’s tipped rate is not simply a default — it is capped at the federal level by design, and it only moves if Congress raises the federal minimum wage.
One statewide rate, and your employer still owes any shortfall
Because the state rate is fixed at the federal level and local governments cannot set their own higher wages, the $2.13 tipped cash wage applies the same way across Utah, from Salt Lake City to St. George.
The tip credit does not let an employer pay you below the floor. 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. The Utah Labor Commission handles wage claims.
Tip pooling in Utah
Utah 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 Utah 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.
Utah tip law FAQs
What is the tipped minimum wage in Utah?
Employers in Utah 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 Utah?
Utah 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 Utah?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Utah. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Why is Utah’s minimum wage the same as the federal rate?
Utah Code Section 34-40-103 lets the Labor Commission set the wage by rule but forbids setting it above the federal minimum. So Utah’s minimum stays at $7.25 and its tipped cash wage at $2.13 unless the federal rate rises.
Can a Utah city set a higher tipped minimum wage?
No. Utah does not allow enforceable local minimum wages, so a single statewide rate applies and the tipped cash wage stays $2.13.