Federal & State Regulations | Tips - Wisconsin | J. J. Keller® Compliance Network

Summary of difference between federal and state regulations

There are certain instances where employers can pay employees at a rate lower than the minimum hourly wage specified by the Fair Labor Standards Act. The most common instance pertains to an employee who earns tips. The employer can deduct the amount of the tips (but only up to a certain maximum amount) from the hourly wage.

Wisconsin Administrative Code §272.03(2) requires employers pay employees who receive tips a minimum of $2.33 per hour (except opportunity employees) and $2.13 per hour for opportunity employees.

“Opportunity employee” means an employee who is not yet 20 years old, during the first 90 consecutive days after the employee is initially employed by the employer.