Small Employers with Tips and Medical Benefits

(Under 16 years old)

Effective January 1, 2021
Minimum Wage


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.

YearMinimum CompensationMinimum 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

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How old is the employee?

Under 16 years old


Does the employee earn tips? Yes


Does the employer pay toward medical benefits?



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