Current Minimum Wage on Tipped Workers in Idaho

1. What is the current minimum wage for tipped workers in Idaho?

The current minimum wage for tipped workers in Idaho is $3.35 per hour.
2. How does this compare to the federal minimum wage for tipped workers?

This is lower than the federal minimum wage for tipped workers, which is $2.13 per hour. However, if an employee’s tips combined with their base pay do not equal at least the state or federal minimum wage (whichever is higher), the employer is required to make up the difference.

2. Is there a difference between the tipped minimum wage and regular minimum wage in Idaho?


Yes, there is a difference between the tipped minimum wage and regular minimum wage in Idaho. The regular minimum wage in Idaho is currently $7.25 per hour, while the tipped minimum wage is $3.35 per hour. Tipped employees must also earn at least $7.25 per hour when tips are included, or their employer must make up the difference to meet the regular minimum wage.

3. How much do tipped workers make per hour in Idaho?


In Idaho, the minimum wage for tipped workers is $3.35 per hour. However, if the employee does not earn enough in tips to equal at least minimum wage of $7.25 per hour, the employer must make up the difference.

4. Has the minimum wage for tipped employees increased in Idaho recently?


Yes, the minimum wage for tipped employees in Idaho has increased in recent years. In 2021, the minimum wage for tipped employees is $3.35 per hour, which is an increase from the previous year’s rate of $3.18 per hour. This rate may continue to increase in future years based on legislation and cost-of-living adjustments.

5. Are there any pending changes to the tipped minimum wage in Idaho?


As of 2021, there are no pending changes to the tipped minimum wage in Idaho. It remains at $3.35, or $7.25 with tips included, which is the federal minimum for tipped employees.

6. Can a tipped worker afford a living wage in Idaho?


No, a tipped worker in Idaho would not be able to afford a living wage. The current minimum wage for tipped workers in the state is only $3.35 per hour, which is significantly lower than the statewide minimum wage of $7.25 per hour. Additionally, many tipped workers rely on tips to supplement their income, and these tips can be unpredictable and often not enough to make up for the low hourly wage. This makes it difficult for tipped workers in Idaho to cover basic expenses like rent, transportation, and healthcare.

7. How does Idaho’s minimum wage for tipped employees compare to neighboring states?

Idaho’s minimum wage for tipped employees is higher than 3 of its neighboring states, lower than 1, and equal to 1.

– Higher: Montana (at least $8.50 per hour)
– Lower: Utah ($2.13 per hour plus tips)
– Equal: Wyoming ($5.15 per hour plus tips)
– Higher: Oregon ($11.25-$12.75 per hour)
– Higher: Washington ($13.50 per hour)

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Idaho?


Yes, according to the Fair Labor Standards Act (FLSA) and Idaho state law, employers are required to make up the difference if a tipped worker’s wages fall below the standard minimum wage. This is known as the “tip credit,” and it allows employers to pay tipped workers a lower cash wage (as low as $2.13 per hour in Idaho) as long as their tips bring their total earnings up to at least the standard minimum wage ($7.25 per hour in Idaho). If a worker’s tips do not bring them up to the standard minimum wage, the employer is responsible for paying the remaining amount.

It’s also important to note that any tips received by an employee are considered their property and cannot be used by employers for any reason other than making up the tip credit or contributing to a valid tip pool among employees.

9. Do cities within Idaho have their own separate tipped minimum wage rates or is it consistent throughout the state?


Cities within Idaho do not have their own separate tipped minimum wage rates. The state’s minimum wage for tipped employees is consistent throughout all cities.

10. Has there been any discussion of increasing the minimum wage for tipped employees in Idaho?


Yes, there have been discussions about increasing the minimum wage for tipped employees in Idaho. In February 2021, the Idaho Senate Commerce and Human Resources Committee voted to introduce a bill that would gradually increase the minimum wage for tipped employees from $3.35 per hour to $9.00 per hour by 2025. However, this bill has not yet been voted on by the full Senate and it is uncertain if it will pass or be amended further. Some advocates argue that increasing the minimum wage for tipped employees would help reduce income inequality and support workers in industries such as restaurants and bars that heavily rely on tips for their livelihoods. Others argue that raising the minimum wage could lead to higher prices for consumers and potentially reduce job opportunities in these industries. The debate on this issue is ongoing in Idaho.

11. Does Idaho have a different minimum wage for servers versus other types of tipped workers?


Yes, Idaho has a different minimum wage for servers who receive tips. The state’s minimum wage for tipped workers is $3.35 per hour, which is at least one-half of the federal minimum wage of $7.25 per hour. If an employee’s tips combined with the employer’s direct wages do not equal the minimum hourly wage, the employer must make up the difference in cash wages.

12. How does Idaho’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?

Idaho’s current tipped employee minimum wage is $3.35 per hour, which is the same as the federal standard for tipped employees, and lower than the minimum wages for tipped employees in all of its neighboring states. The minimum wage for tipped employees in Washington is $13.69 per hour, $9.86 per hour in Oregon, and $5.13 per hour (plus tips) in Montana.

13. In Idaho, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?


Yes, employers in Idaho are allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees. Idaho follows the federal Fair Labor Standards Act (FLSA) regarding tip credits, which allows employers to take a tip credit towards their minimum wage obligations as long as certain conditions are met. These conditions include informing employees of the tip credit and ensuring that the total of tips received plus the cash wage equals at least the minimum wage rate.

14. Is there a plan to increase the tip credit percentage in Idaho, which currently has one of the lowest rates nationwide?

There are currently no plans to increase the tip credit percentage in Idaho. Any changes to the minimum wage or tip credit would need to be proposed and passed by state legislation.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in Idaho?


No, there are no exemptions from paying the state’s established tip credit rate for certain industries or professions in Idaho. The tip credit rate applies to all employers who have tipped employees, regardless of their industry or profession.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?


Yes, legislators in [State] have the authority to override local laws regarding a separate tipped worker minimum wage rate. The state legislature has the power to pass laws that supersede or preempt local ordinances on certain issues, including minimum wage rates. However, some cities and counties in [State] have home rule charters that allow them to make their own laws without interference from the state legislature, so it is possible that certain localities may have their own separate tipped worker minimum wage rates.

17. Has Idaho recently adjusted its tip pooling laws affecting server wages?


There have been several recent changes to Idaho’s tip pooling laws that could affect server wages. In 2018, the Department of Labor issued a new rule allowing employers to take a tip credit against minimum wage for tipped employees as long as they are paid at least $7.25 per hour in direct wages and tips. This rule also allows employers to require tipped employees to share their tips with back-of-house staff, such as cooks and dishwashers.

However, in August 2021, a federal district court ruled that this rule was invalid in Idaho, stating that tipped employees must retain full control over their tips unless they voluntarily agree to participate in a valid tip pooling arrangement. This ruling has not been appealed and remains in effect currently.

Additionally, Idaho has a law that prohibits employers from retaining any portion of an employee’s tips or gratuities. This means that servers must be allowed to keep all of the tips they receive from customers. Employers are also not allowed to impose rules or policies that require servers to turn over all or part of their tips to non-tipped employees.

It is important for servers and employers in Idaho to stay updated on any changes to these laws and regulations to ensure compliance with state and federal requirements regarding tip pooling and distribution.

18. How do Idaho’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?


The current hourly minimum wage in Idaho is $7.25, which is the same for all non-tipped workers, including those in the restaurant industry. There is no separate minimum wage specifically for restaurant personnel in Idaho. However, employers are required to pay tipped employees a minimum wage of $3.35 per hour, as long as they make at least $30 a month in tips and their total earnings (including tips) equal at least the state’s minimum wage rate of $7.25 per hour. This means that the effective hourly wage for tipped workers in Idaho may be slightly higher than $7.25 per hour if they receive enough tips to meet these requirements.

Overall, Idaho’s minimum wage for non-tipped workers and its tipping system for restaurant workers are on par with federal standards and other states’ minimum wage laws. However, some states have implemented higher minimum wages specifically for tipped employees, which can vary from state to state but tend to range from about 50%-75% of the regular minimum wage. In comparison, Idaho’s tipped employee minimum wage rate is only about 46% of the regular minimum wage rate.

19. In Idaho, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?


Yes. In Idaho, employees who receive tips are classified as “tipped employees” and are subject to a lower minimum wage rate than non-tipped employees. The current minimum wage for tipped employees in Idaho is $3.35 per hour, while the minimum wage for non-tipped employees is $7.25 per hour. This means that restaurants and other establishments may pay their tipped employees a lower hourly rate, as long as they make up the difference between the tipped minimum wage and the regular minimum wage with tips received by the employee.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?


You can access information on minimum wage laws for tipped workers in each US state and territory through various sources, including government websites and research organizations. Some helpful resources include:

1. The US Department of Labor provides a list of each state’s minimum wage rates for tipped workers on its Wage and Hour Division website: https://www.dol.gov/agencies/whd/state/tipped-workers

2. The National Conference of State Legislatures offers a database on state minimum wage laws, which includes information on tipped worker rates: https://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx

3. The Economic Policy Institute has a report that examines the tipped minimum wage at both the federal and state levels: https://www.epi.org/publication/the-tipped-minimum-wage-at-the-state-level-2021/

4. The National Employment Law Project has a report on how states have been addressing the issue of raising the tipped minimum wage: https://www.nelp.org/publication/wage-policies/raising-tipped-minimum-wage-states/

It’s important to note that while the federal government sets a minimum wage standard for all states, individual states may have their own laws and regulations regarding tipped employees. It’s always best to check with your state’s labor department for the most up-to-date information.