Tipped Employees: Payment of Less than Minimum Wage - The Maryland Guide to Wage Payment and Employment Standards

Employers are allowed to pay tipped employees (defined as employees regularly earning more than $30 per month in tips) not less than $3.63 per hour, provided each employee earns enough tips to bring their average hourly wage to at least the State minimum wage $7.25 per hour. Deficiencies must be supplemented by the employer to bring the employee to the minimum wage level.

Note: Tipped employees who are from time to time assigned to perform non-tip related tasks must be paid by their employer at least the full minimum wage rate for that non-tipped time.

Updated July 19, 2010