New Hampshire's Tipped Wage: A Distinctive 45% Rule
New Hampshire sets its tipped wage at a fixed 45% of the state's minimum wage, a unique percentage-based calculation among states. This results in a current cash wage of $3.27 per hour for eligible tipped employees. The rule, codified in RSA 279:21, automatically adjusts if the federal minimum wage changes, as New Hampshire's state minimum is tied to the federal standard.
NH Tipped Wage 45% Rule
Tipped employees must be paid at least 45% of the state minimum wage in cash, provided tips bring them to or above the full minimum wage.
What those rules do as a New Hampshire shift is created.
Teambridge automatically calculates the correct tipped cash wage and tip credit application for New Hampshire employees, ensuring compliance with the state's distinctive 45% rule. This means your payroll is accurate from the start, without manual adjustments or constant monitoring of federal minimum wage changes.
Dynamic Wage Calculation
Teambridge automatically sets the cash wage for eligible tipped employees at 45% of the current New Hampshire minimum wage, which itself is tied to the federal minimum. This ensures the correct $3.27/hr cash wage (as of 2026) is always applied.
Tip Credit Verification
For each shift, the system monitors if the employee's combined cash wage and reported tips meet or exceed the full state minimum wage of $7.25/hr. If tips fall short, Teambridge flags the need for a tip credit adjustment to ensure compliance.
Preventing Underpayment
By actively tracking tip earnings against the full minimum wage, Teambridge prevents situations where tipped employees might inadvertently be paid below the required state minimum, avoiding potential wage claims and penalties.
Deploy New Hampshire compliance for your business.
Stop worrying about keeping up with changing state laws. Teambridge handles it automatically.
New Hampshire's Tipped Wage Law (RSA 279:21)
New Hampshire Revised Statutes Annotated (RSA) 279:21 establishes the minimum wage for service employees who customarily and regularly receive more than $30 a month in tips. The statute mandates that such employees must receive a direct wage of at least 45% of the applicable state minimum wage, with the remaining portion (up to the full minimum wage) covered by tips.
RSA 279:21 - Minimum Wage.
I. Unless otherwise provided by federal law, no employer shall employ any employee at a wage rate of less than the federal minimum wage, or its equivalent, as is now or may hereafter be established by the United States. [...]
III. An employer may pay a service employee whose customary and regular wage is more than $30 a month in tips, a minimum cash wage of not less than 45 percent of the applicable minimum wage rate. The employer may consider tips as part of wages, but the sum of the direct wage and the tips received by the employee must equal or exceed the minimum wage rate.
Eligibility for Tipped Wage
The reduced cash wage applies specifically to "service employees" who meet two criteria: they must customarily and regularly receive more than $30 per month in tips, and they must be employed in a restaurant, hotel, motel, inn, or cabin. This definition narrows the scope considerably compared to federal guidelines, which generally apply to any employee receiving over $30 in tips. The employer is responsible for ensuring that the combination of the direct cash wage and tips received by the employee equals or exceeds the full state minimum wage of $7.25 per hour.
Tip Credit and Employer Responsibilities
New Hampshire allows employers to take a "tip credit" against the state minimum wage. The maximum tip credit an employer can claim is the difference between the full minimum wage ($7.25/hr) and the 45% cash wage ($3.27/hr), which currently amounts to $3.98 per hour. Employers are required to inform employees about the tip credit provisions and ensure that employees retain all their tips, except for valid tip pooling arrangements among customarily tipped employees. If an employee's tips plus the direct cash wage do not meet the full minimum wage, the employer must make up the difference.
New Hampshire's tipped wage, on autopilot.
Teambridge integrates New Hampshire's distinctive tipped wage rule directly into your payroll and scheduling processes. From initial setup to ongoing compliance, we ensure that your operations align with RSA 279:21 without constant manual oversight.
Automatic Tipped Wage Configuration
When you onboard New Hampshire employees, Teambridge automatically identifies roles eligible for the tipped wage. The system then configures their base cash wage at $3.27/hr, aligning with the 45% rule, and sets the maximum tip credit at $3.98/hr.
Continuous Tip Credit Compliance
During each pay period, Teambridge monitors reported tips against the employee's cash wage. If the combined amount falls below the full $7.25/hr state minimum wage, the system automatically calculates and applies the necessary top-up to ensure compliance.
Adapting to Federal Minimum Wage Changes
Since New Hampshire's minimum wage is tied to the federal standard, Teambridge automatically updates the base state minimum wage, and consequently, the 45% tipped cash wage and maximum tip credit, whenever federal changes occur. No manual intervention required.
Transparent Compliance Records
All tipped wage calculations, tip credit applications, and top-up payments are meticulously recorded. Teambridge provides comprehensive reports, ensuring you have a clear audit trail for any compliance review or inquiry from the New Hampshire Department of Labor.