Special tip rules. Special rules apply for tips received by employees. Federal law allows you, within limits, to presume that your tipped employees are receiving a certain level of tips each pay period. Thus, you can claim a credit against the minimum wage for tips. The employee must be notified that you're taking the credit.
Some states also address tip credits.
If your state's minimum wage, minus the state tip credit, is higher than the federal minimum wage, minus the federal tip credit, you must pay the worker the higher amount. Sometimes individual states set minimum wages either above or below the federal minimum wage. In some cases, a state's minimum wage will vary by the type of worker. If you're subject to both state and federal laws, you must pay the higher amount. If you're not subject to federal minimum wage law, it doesn't mean that you're also exempt from state minimum wage requirements.