For employers · FLSA §3(m) elements · 2026 state rates built in
Tip credit notice generator
No notice, no tip credit — that's the federal rule. Generate the required employee notice with your state's actual numbers already filled in.
Frequently asked
Tip credit notice FAQ
Do I really have to give this notice?
Yes — it’s a condition of the tip credit itself. The FLSA says the credit doesn’t apply to any employee who hasn’t been informed of its provisions. No notice, no credit: you’d owe full minimum wage in cash, retroactively.
Does it have to be in writing?
Federal law allows oral or written notice — but written is the only kind you can prove. Best practice is a signed acknowledgment kept in the employee’s payroll file, and some states require writing outright.
When do I give it?
Before the tip credit is first applied — in practice, at hiring and again whenever the rates or your tip pool change. A new notice each January (when most states adjust rates) is a clean habit.
What if my state doesn’t allow a tip credit?
Then there’s nothing to notice: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington require full minimum wage in cash before tips. This generator will tell you if that’s your state.
Is the generated notice legal advice?
No — it encodes the five federally required elements with your state’s published rates, which makes it a strong draft. Local ordinances and wage orders (especially in NY) can add requirements, so a quick counsel review is wise.
Notice given — now run the pool right
TipHive splits the pool your notice promises.
Hours, points, or percentage — the nightly split, done in seconds and consistent with the policy your team signed.
Sources & disclaimer
Required notice elements: DOL Fact Sheet #15. State rates: DOL — Minimum Wages for Tipped Employees (2026) — see our state lookup for every rate. This is a compliance draft for review with counsel, not legal advice. City ordinances and wage orders can add requirements.