Mississippi defers to federal $2.13 tipped wage, with no state-specific framework.
Mississippi does not have a state law governing tipped wages, meaning employers must adhere to the federal Fair Labor Standards Act (FLSA) standard. This allows for a cash wage of $2.13 per hour, provided tips bring the employee's total compensation up to the federal minimum wage of $7.25 per hour. Employers must perform a tip credit calculation to ensure compliance.
Mississippi Tipped Wage - Federal Default
Mississippi has no state tipped wage framework. Federal $2.13 cash + tip credit framework controls. Workers earning $30+/month in tips qualify as tipped employees. Total compensation must reach $7.25 federal floor. OT calculated based on full $7.25, not $2.13 cash wage.
What those rules do as a Mississippi shift is created.
Teambridge automatically applies the federal tipped wage standard to all eligible employees in Mississippi, ensuring accurate payroll and compliance with FLSA requirements.
Tipped Employee Identification
Teambridge identifies employees who regularly receive more than $30 per month in tips as "tipped employees," qualifying them for the federal tipped wage provisions.
Tip Credit Calculation & Monitoring
For each pay period, Teambridge calculates the tip credit, ensuring that the employee's cash wage ($2.13/hour) plus actual tips received equals at least the federal minimum wage of $7.25/hour. If tips fall short, the system automatically makes up the difference.
Overtime Rate Calculation
Teambridge accurately calculates overtime pay for tipped employees based on the full federal minimum wage of $7.25 per hour, not the lower cash wage of $2.13 per hour, as required by FLSA.
Stop stressing about Mississippi compliance.
Teambridge handles the proactive monitoring and precise execution of all Mississippi wage and hour laws, so you can focus on your business.
Mississippi adopts the federal standard for tipped wages.
As Mississippi does not have its own state minimum wage or tipped wage law, employers are required to comply with the federal Fair Labor Standards Act (FLSA) provisions regarding tipped employees.
29 U.S.C. § 203(m)(2)(A) (FLSA)
"In determining the wage of a tipped employee, the amount paid such employee by his employer shall be deemed to be an amount equal to the cash wage paid to such employee which amount shall be not less than the cash wage required to be paid to such an employee on August 20, 1996, and in addition thereto the amount of the tips received by such employee, but not to exceed the value of the tips actually received by the employee."
Key Components of the Federal Tipped Wage Rule in Mississippi
Under the FLSA, employers in Mississippi may pay a tipped employee a cash wage of $2.13 per hour, provided that the employee's tips, when combined with this cash wage, equal at least the federal minimum wage of $7.25 per hour. This difference, currently $5.12 per hour, is known as the "tip credit." Employers must inform employees of the tip credit provision before it is utilized. If an employee's tips and cash wage do not meet the federal minimum wage, the employer must make up the difference.
Definition of a Tipped Employee and Overtime Calculation
An employee is considered "tipped" if they customarily and regularly receive more than $30 per month in tips. For these employees, overtime pay must be calculated based on the full federal minimum wage of $7.25 per hour, not the reduced cash wage. This means that for hours worked over 40 in a workweek, the employee must receive 1.5 times the full minimum wage rate, minus any applicable tip credit already taken.
Teambridge ensures Mississippi tipped wage compliance, automatically.
Teambridge integrates the federal tipped wage rules directly into your payroll system, providing peace of mind and eliminating manual calculation errors for your Mississippi workforce.
Automatic Tipped Employee Classification
Our platform automatically identifies employees who meet the federal definition of a tipped employee based on earnings data, ensuring the correct wage rules are applied from day one.
Real-time Tip Credit Monitoring
Teambridge continuously monitors actual tips received against the federal minimum wage, automatically adjusting cash wages to cover any shortfall and ensure compliance with the $7.25/hour floor.
Accurate Overtime for Tipped Staff
Overtime hours for tipped employees are correctly calculated at 1.5 times the federal minimum wage, ensuring full FLSA compliance without requiring manual intervention or complex calculations.
Detailed Record-Keeping
All tip reporting, cash wage adjustments, and overtime calculations are meticulously documented and auditable, providing a clear record for compliance verification.
People also ask.
What is the minimum cash wage for tipped employees in Mississippi?
In Mississippi, the minimum cash wage for tipped employees is $2.13 per hour, as mandated by the federal Fair Labor Standards Act (FLSA). This is because Mississippi does not have its own state-specific tipped wage law.
How much can an employer take as a tip credit in Mississippi?
Employers in Mississippi can take a tip credit of up to $5.12 per hour. This credit is the difference between the federal minimum wage ($7.25) and the federal tipped cash wage ($2.13). The combination of the cash wage and tips must at least meet the federal minimum wage.
What happens if a tipped employee's tips don't bring them up to the federal minimum wage?
If an employee's cash wages ($2.13/hour) plus their tips do not equal at least the federal minimum wage of $7.25/hour for all hours worked in a workweek, the employer is legally obligated to make up the difference. This ensures the employee always earns at least the federal minimum wage.
Are employers required to notify employees about the tip credit?
Yes, under federal law, employers must inform their tipped employees of the tip credit provisions before they are utilized. This notification should include the amount of the cash wage paid, the amount of the tip credit, and that all tips received by the employee are to be retained by the employee (except for valid tip pooling arrangements).
How is overtime calculated for tipped employees in Mississippi?
Overtime for tipped employees in Mississippi must be calculated based on the full federal minimum wage of $7.25 per hour, not the lower cash wage of $2.13 per hour. This means the overtime rate is typically $10.88 per hour (1.5 times $7.25), from which the employer can still take the $5.12 tip credit, resulting in a cash overtime payment of $5.76 per hour.
Does Mississippi have any specific rules for tip pooling?
Mississippi does not have state-specific rules regarding tip pooling. Therefore, federal FLSA regulations apply. Generally, valid tip pools can only include employees who customarily and regularly receive tips, such as servers, bussers, and bartenders. Employers and managers cannot participate in tip pools.