Wisconsin tip pooling laws & tipped minimum wage
In Wisconsin, employers can pay tipped workers $2.33/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 | $2.33/hr |
| Maximum tip credit | $4.92/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 Wisconsin labor department. Not legal advice.
Wisconsin matches the federal minimum but sets its own tipped wage
Wisconsin’s minimum wage is $7.25 an hour, the same as the federal floor. But the state does not simply copy the federal $2.13 tipped cash wage — it sets its own higher figure of $2.33 an hour for tipped employees.
That leaves your employer a maximum tip credit of $4.92, slightly smaller than the federal $5.12, because the required cash wage starts a little higher. The total still has to reach $7.25 an hour once tips are added.
Your employer must notify you before using the tip credit — and cover any shortfall
Wisconsin lets an employer pay the $2.33 cash wage only if it tells you about the tip-credit arrangement first. You are entitled to know what you are being paid in cash and how your tips are being counted.
The credit is not a way around the minimum. In any pay period where your $2.33 cash wage plus tips do not average at least $7.25 an hour, your employer must make up the difference so you still earn the full minimum wage.
Tip pooling in Wisconsin
Wisconsin follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.33/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 Wisconsin 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.
Wisconsin tip law FAQs
What is the tipped minimum wage in Wisconsin?
Employers in Wisconsin may pay tipped employees a cash wage of $2.33/hr and claim a tip credit of up to $4.92/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 Wisconsin?
Wisconsin follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $2.33/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 Wisconsin?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Wisconsin. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).
Why is Wisconsin’s tipped wage $2.33 instead of the federal $2.13?
Wisconsin sets its own tipped cash wage rather than adopting the federal figure. At $2.33 an hour it is 20 cents higher than the federal $2.13, which makes the maximum tip credit $4.92 rather than $5.12. The full minimum you must reach with tips is still $7.25 an hour.
Can my employer pay me $2.33 without telling me?
No. Wisconsin requires your employer to inform you of the tip-credit arrangement before paying the lower $2.33 cash wage. You are entitled to know your cash rate and how tips factor in, and if your pay plus tips falls below $7.25 an hour, the employer must make up the difference.