Small Employers with Tips and Medical Benefits

(Under 16 years old)

Effective January 1, 2018
Minimum Wage

$9.78/hour

Small employers pay an hourly minimum wage and reach minimum compensation through employee tips and/or payments toward an employee’s medical benefits plan. If the tips and/or payments do not add-up to the minimum compensation rate, the employer makes up the difference.

YearMinimum
Compensation
Minimum Wage
2016 (January 1) $10.20/hour $8.93/hour
2017 (January 1) $11.05/hour $9.35/hour
2018 (January 1) $11.90/hour $9.78/hour
2019 (January 1) $12.75/hour $10.20/hour
2020 (January 1) TBD $11.69/hour
2021 (January 1) TBD $12.75/hour

Minors under 16 years old can earn 85% of the hourly rate required.

Previous Answers

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How old is the employee?

Under 16 years old

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Does the employee earn tips? Yes

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Does the employer pay toward medical benefits?

Yes

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What size is the employer? 500 or fewer employees: Small Employer (Schedule 2)

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