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Are Tipped Employees Entitled to Minimum Wage in Ohio?

Posted on July 29, 2025 by Legal Team

If you work as a tipped employee in Ohio, it’s important to know exactly how much you deserve to get paid according to the state’s minimum wage laws. If your employer is guilty of paying you less than minimum wage, illegal tip pooling, unpaid overtime, or other wage and hour violations, contact a minimum wage violations attorney in Cleveland for legal advice. You may be entitled to compensation.

Ohio’s Tipped Minimum Wage Rules (2025)

As of January 1, 2025, Ohio’s minimum wage was increased to $5.35 per hour for tipped employees and $10.70 per hour for nontipped employees. Since the federal minimum wage for tipped workers is $2.13 per hour, Ohio employers must use the state’s higher minimum to pay employees.

According to this law, any employee who works for tips, such as servers, must make a minimum of $5.35 per hour in wages. The total wage of a tipped employee, including tips earned, must be at least $10.70 per hour. Employers in Ohio are permitted to count a worker’s tips as part of the minimum wage. This is known as a “tip credit.”

What Is a Tip Credit in Ohio? 

Tip credits are permitted in some states to bridge the gap between what a tipped employee earns in tips and the minimum wage required by law. In Ohio, employers can pay tipped employees less than the state’s minimum wage, but only if the employee earns enough in tips to make up the difference. State law requires workers to pay tipped employees at least half the usual minimum wage before taking tip credit for the rest.

The Fair Labor Standards Act and the Ohio Minimum Fair Wage Standards Act permit tipped employees to be paid less than minimum wage if the tips, when combined with hourly pay, equals or exceeds the minimum wage of $10.70. If the employee does not make enough in tips to meet the minimum wage, the employer is legally obligated to pay enough in wages to fulfill the requirement.

Common Ohio Tip Credit Violations

Tipped employees need to be vigilant when it comes to their paychecks. Employers too often break the law and fail to properly pay servers minimum wage in Ohio. This can include:

  • Failing to provide employees notice of tip crediting
  • Relying on tip reporting to communicate the notice
  • Tip pooling with non-tipped employees
  • Failing to pay the correct amount if tips and wages do not equal minimum wage
  • Taking a tip credit for a worker’s time spent performing tasks unrelated to tipped duties
  • Counting service charges or credit card charges as tips

Overtime violations are also common for tipped employees. Tipped overtime wages must be at least 1.5 times the worker’s hourly rate for any hour worked over 40 in one week.

What to Do if Your Tips Don’t Cover Minimum Wage

If you are not being paid properly or fairly according to state minimum wage laws as a tipped employee in Ohio, start documenting your hours, tips and pay. Try to remedy the issue by speaking to your employer. It may be an honest mistake that can be fixed. If your employer refuses to cooperate or give you back pay for hours worked, contact Scott & Winters Law Firm, LLC to help you file a wage claim.

Combined with your base wage, tips that you earn must meet or exceed minimum wage in Ohio. Otherwise, you are a victim of an illegal wage violation. This could make you eligible to recover triple damages under Ohio law for every hour worked and not fairly compensated. An experienced attorney can handle your claim for you to demand fair compensation for your losses in or out of the courtroom.

For a free consultation about your specific case, contact us today at (216) 446-8886.