Florida Overtime Rules for Tipped Employees

Florida Overtime Rules for Tipped Employees: Key Takeaways

As of September 30, 2025, Florida’s minimum wage will be $14.00 per hour with a tip credit of up to $3.02 per hour allowed.
Overtime pay is required for work beyond 40 hours per week, calculated at 1.5 times the regular minimum wage ($21.00/hour for $14 minimum wage).
For overtime hours, the tip credit is subtracted from the overtime rate, requiring at least $17.98 per hour direct cash wage for tipped employees.
Tip credit cannot be applied if tipped employees spend over 20% of workweek on non-tipped duties or perform non-tipped tasks more than 30 consecutive minutes.

Understanding Florida’s specific overtime rules for tipped employees is vital for both employers and workers to ensure compliance and fair pay.

These regulations balance tip credits with proper minimum and overtime wage protections under Florida law.

Florida employers hiring tipped staff can optimize postings with our guide to jobs for tipped employees.

1. Overview of Florida Minimum Wage and Tip Credit Rules

Florida sets its minimum wage annually; as of September 30, 2025, it will be $14.00 per hour.

Employers can take a tip credit up to $3.02 per hour, paying tipped employees a direct wage as low as $10.98 per hour, provided total pay (wage plus tips) meets or exceeds the $14.00 threshold.

Tipped employees are those who regularly earn over $30 per month in tips from customers, including waitstaff, bartenders, and other service workers.

For role details, review the bartender job description.

2. Florida Overtime Pay Calculations for Tipped Employees

Florida requires overtime pay for any hours worked over 40 per week.

Overtime is calculated at one and a half times the employee’s regular minimum wage. With a $14 minimum wage, overtime pay equals $21.00 per hour.

However, for tipped employees, the overtime rate for direct wages is adjusted by subtracting the tip credit:

$21.00 (overtime rate) - $3.02 (tip credit) = $17.98 direct cash wage per overtime hour

This means employers must pay tipped employees at least $17.98 per hour in direct wages for overtime hours worked, plus tips earned during those hours.

If total compensation falls short of this amount, employers must make up the deficiency.

Avoid costly violations like unpaid off the clock costs by enforcing proper timekeeping.

3. Restrictions on Tip Credit Application During Non-Tipped Work

Florida law restricts the use of tip credits when tipped employees perform significant non-tipped duties.

If an employee spends more than 20% of their total workweek on non-tipped tasks, the employer cannot claim tip credits for that period and must pay full minimum wage without credit.

Additionally, if non-tipped work exceeds 30 consecutive minutes, tip credits are disallowed for that task time.

This rule prevents employers from improperly lowering wages by labeling substantial non-tip-related work as tipped time.

Examples of Non-Tipped Duties Affecting Tip Credit

Cleaning duties
Restocking supplies
Taking inventory
Setting up dining rooms or bar areas

See what tasks qualify while aligning staffing with the server job description.

4. Recordkeeping and Tip Pooling Requirements Under Florida Law

Employers must keep accurate records of all tips received by tipped employees to ensure proper wage calculations.

Tip pooling arrangements are permitted but must comply with state and federal regulations. For planning, see the tip pooling template.

Employers cannot keep any portion of employees’ tips, and managers or supervisors are generally excluded from tip pools (owner tip rules).

Failure to properly track and distribute tips or to pay correct wages can trigger legal penalties and require wage restitution.

5. Best Practices for Compliance with Florida Overtime Rules for Tipped Employees

To maintain compliance and avoid costly disputes, employers should:

Regularly review and update payroll systems to reflect minimum wage and tip credit changes.
Calculate overtime pay carefully, incorporating tip credit adjustments.
Monitor employees’ duties to identify time spent on non-tipped tasks and adjust wage calculations accordingly.
Maintain thorough tip records and clarify tip pooling policies with employees.
Provide clear communication to employees regarding wage rates, tip credit policies, and overtime pay.

If you employ beverage staff, clarify duties using the cocktail server job description.

6. Where to Find Official Florida Overtime and Tip Credit Guidance

Employers and employees seeking authoritative details on overtime and tip rules can consult the following resources:

For context on state pay floors in hospitality, review the server minimum wage guide.

Florida Overtime Rules for Tipped Employees: Conclusion

Florida’s overtime regulations for tipped employees blend tip credit allowances with protections ensuring fair wages, especially for overtime hours.

Employers must ensure tipped employees receive proper minimum and overtime pay, carefully adjusting for tip credits while adhering to limits on non-tipped work.

By maintaining clear records, communicating wage policies, and complying with both state and federal guidelines, Florida businesses can uphold legal standards and promote equitable compensation for tipped workers.

For front-of-house hiring clarity, consult the waitress job description.

01. What is the Florida minimum wage for tipped employees in 2025?

As of September 30, 2025, Florida’s minimum wage will be $14.00 per hour, with a tip credit of up to $3.02 allowed, resulting in a direct cash wage of at least $10.98 per hour for tipped workers.

02. How is overtime pay calculated for tipped employees in Florida?

Overtime pay is calculated at 1.5 times the minimum wage ($21.00/hour for a $14 minimum wage) minus the tip credit ($3.02), resulting in a required direct overtime wage of $17.98 per hour.

03. When can tip credits not be applied in Florida?

Tip credits cannot be applied if tipped employees spend over 20% of their workweek on non-tipped duties or perform non-tipped work for more than 30 consecutive minutes.

04. Are employers allowed to include managers in tip pools under Florida law?

No. Managers and supervisors are typically excluded from tip pools, and employers may not keep any portion of employees’ tips according to Florida regulations.

05. What are best practices for employers to comply with Florida overtime and tip credit rules?

Employers should regularly update payroll systems, monitor employee duties, maintain thorough tip records, and clearly communicate wage and tip credit policies to employees.