So, how does this all work? Well, employers are required to pay their tipped employees at least the minimum wage for all hours worked, plus any tips they receive. But if the employee's hourly wage, including tips, is less than the minimum wage, the employer has to make up the difference.
But here's the thing: tipped employees in California are actually better off than those in other states. In some states, employers are allowed to pay their tipped employees as low as $2.13 per hour, as long as the employee's tips bring their hourly wage up to the minimum wage. Yeah, it's a bit of a tip-based loophole!
Now, you might be wondering: what kind of jobs are we talking about here? Well, it's not just waiters and bartenders. We're also talking about hairdressers, barbers, and even tour guides - anyone who receives tips as part of their job. And in California, these employees are protected by some of the strongest labor laws in the country.
Tipped Minimum Wage by State – Compare All 50 States (2026)
