Even if your employer uses the tip offset to calculate your wages, if you are eligible for overtime, the rate of pay used to calculate overtime pay is the full federal minimum wage of $7.25 per hour, not the $2.13 per hour in direct wages from your employer. The tip credit of $3.02 per hour is subtracted after the overtime pay is calculated. For example, if you work an extra five hours in a work week, for those hours you must be paid $10.88 per hour ($7.25 per hour X 1.5), minus the tip credit ($3.02 per hour X 1.5), for an effective hourly rate of $6.72.