Small Employers with Tips and Medical Benefits
(Under 16 years old)
Effective January 1, 2021
Minimum Wage
$12.75/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.
*Both tips and/or medical benefits must average at least $1.69 per hour.
| Year | Minimum 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) | $13.50/hour | $11.69/hour |
| 2021 (January 1) | $15.00/hour | $12.75/hour |
Minors under 16 years old can earn 85% of the hourly rate required.
Previous Answers |
||
|
How old is the employee? |
Under 16 years old | |
| Does the employee earn tips? | Yes | |
|
Does the employer pay toward medical benefits? |
Yes | |
| What size is the employer? | 500 or fewer employees: Small Employer (Schedule 2) | |