Utah Tipping Laws & Regulations (2026)

Tip Credit Rules

Utah allows employers to claim a tip credit of $5.12 per hour (the federal amount), provided that:

• The employee receives tips that, combined with the $2.13 base wage, equal or exceed the $7.25 federal minimum wage
• The employee is customarily tipped (servers, bartenders, cocktail servers, bussers)
• The employee is informed of the tip credit amount before employment begins
• Tips are properly documented and claimed
• If tips fall short in any pay period, the employer must make up the difference immediately

Tip Pooling Regulations

Utah allows pooled tip arrangements with clear restrictions:

• Tips may only be pooled among employees who are customarily tipped (servers, bartenders, bussers, food runners)
• Non-tipped employees (kitchen staff, dishwashers) cannot participate in tip pools
• Managers and supervisors cannot take a share of tips unless they regularly perform tipped work
• The tip pool must be reasonable and transparent
• Employees must be informed of the tip pool arrangement in advance

Tip Sharing Policies

While tip sharing is allowed within legal parameters:

• Servers may voluntarily share tips with front-of-house staff (bussers, runners)
• Tips cannot be forcibly shared with non-customarily-tipped positions
• An employer cannot require tips to be shared as a condition of employment
• Each shared arrangement should be documented in writing

Overtime Rules for Tipped Employees

When calculating overtime for tipped employees:

• Overtime is calculated on the full federal minimum wage ($7.25), not the reduced tipped wage
• Tipped employees are entitled to 1.5x the full minimum wage for hours over 40 per week
• This applies regardless of tips received in the pay period
• Gratuity Solutions automatically recalculates for overtime compliance

Record-Keeping Requirements

Utah employers must maintain:

• Daily tip records for each employee claiming tip credit
• Documentation of the tip credit policy provided to employees
• Proof of any tip make-up payments when tips fall short
• Records of tip pooling or sharing arrangements and distributions
• These records must be kept for at least 3 years

Unique Provision: Multi-State Compliance

Utah employers with locations in neighboring states (Nevada, Arizona, Colorado, Idaho, Wyoming) must be aware of varying state minimum wages and tip credit rules. Some neighboring states have higher state minimums or different compliance requirements. Gratuity Solutions handles multi-state compliance automatically, ensuring each location meets its respective state's requirements.