In a fullservice restaurant, servers, customers, and restaurant owners all benefit from the tip credit. It maximizes server earnings, allows operators to hire ample waitstaff, and keeps menu prices affordable.
This optional compensation model means that tipped workers never make less than the prevailing minimum wage—in fact, they often make much more. Nationally, tipped servers take home a median of $27 an hour, with the highest-paid making more than $41 an hour.
The high earning potential the tip credit provides is what draws servers to a career in the restaurant industry. That’s why restaurant workers want to preserve—not eliminate—the tip credit. And the majority of U.S. customers support the tip credit, too.
This optional compensation model means that tipped workers never make less than the prevailing minimum wage—in fact, they often make much more. Nationally, tipped servers take home a median of $27 an hour, with the highest-paid making more than $41 an hour.
The high earning potential the tip credit provides is what draws servers to a career in the restaurant industry. That’s why restaurant workers want to preserve—not eliminate—the tip credit. And the majority of U.S. customers support the tip credit, too.
Fact Sheet
Fact Sheet
Tip Credit Policy Brief
April 15, 2024