Small Employers with Tips and Medical Benefits

(16-17 years old / Adults 18 and older)

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 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) $12.00/hour $10.50/hour
2017 (January 1) $13.00/hour $11.00/hour
2018 (January 1) $14.00/hour $11.50/hour
2019 (January 1) $15.00/hour $12.00/hour
2020 (January 1) $15.75/hour $13.50/hour
2021 (January 1) $16.69/hour $15.00/hour

Previous Answers

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How old is the employee?

16-17 years old or 18 and older


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)