Texas Tip Pooling Laws (2026)

Texas has no tip pooling law of its own, so federal rules apply: an employer can require a pool limited to tipped staff when it pays the $2.13 tipped cash wage, or include cooks and dishwashers when it pays everyone at least $7.25 and takes no tip credit. Owners, managers and supervisors can never take part. Deducting card processing fees from tips needs the employee’s written authorization.

Last reviewed October 11, 2026.

At a glance

Minimum wage	$7.25 an hour; cities and counties cannot set their own
Tipped cash wage	$2.13 an hour (tip credit up to $5.12)
Required tip pools	Allowed under federal rules
Back-of-house in a pool	Only if no tip credit is taken
Owners, managers, supervisors	Never
Card fees taken from tips	Actual percentage, with written authorization
Service charges	Not tips

Tip credit and minimum wage

Texas ties its minimum wage to the federal $7.25 and its tipped wage to the federal $2.13 cash wage (Texas Labor Code §§ 62.051, 62.052). For employers covered by the federal Fair Labor Standards Act, which includes most restaurants, the state minimum wage chapter does not apply and federal law governs directly (§ 62.151). Cities and counties cannot set a higher minimum (§ 62.0515). The Texas Workforce Commission notes that the tip credit itself does not need the employee’s written authorization.

Who can share in a tip pool

Texas adds nothing to federal tip pool law, and the Texas Workforce Commission points employers to the federal rule (29 CFR 531.54). With a tip credit, a required pool can include only employees who customarily and regularly receive tips, such as servers, bussers and service bartenders. With no tip credit, cooks, dishwashers and similar staff can be included. The commission recommends putting the tip-sharing policy in writing and having everyone acknowledge it.

Owners, managers and supervisors

Owners and managers cannot keep employee tips under any circumstances. Under federal rules, a manager or supervisor is anyone whose duties meet the executive test: their main job is managing the business or a department, they direct the work of two or more employees, and they can hire and fire or their recommendations on it carry particular weight. Salary and job title do not matter. A manager may keep only tips for service they provided directly and solely.

Credit card tips

Federal guidance lets an employer deduct the actual percentage the card company charges, never more, and the tip must still be paid by the regular payday. Texas adds a condition: the employer needs the employee’s written authorization to deduct card fees from tips (40 TAC § 821.28; Labor Code § 61.018).

Service charges

Service charges are not tips under federal law (29 CFR 531.55). For sales tax, a mandatory gratuity of 20% or less is exempt if it is separately stated, identified as a tip or gratuity and paid out to qualified employees; above 20%, the whole charge is taxable (34 TAC § 3.337).

Texas tip pooling FAQ

Is tip pooling legal in Texas?

Yes. Texas follows federal law: an employer can require a tip pool among tipped employees, or include back-of-house staff if it pays everyone at least $7.25 and takes no tip credit.

What is the tipped minimum wage in Texas?

$2.13 an hour in cash, with tips making up the rest of the $7.25 minimum. If tips fall short in a workweek, the employer pays the difference.

Can my employer take credit card fees out of my tips in Texas?

Only the actual processing percentage, only with your written authorization, and the tip must still be paid by the regular payday.

Can managers be in a tip pool in Texas?

No. Owners, managers and supervisors cannot receive tips from a pool or keep employees’ tips.

Official sources

This page summarizes the law for restaurant operators and staff; it is not legal advice. Wages and rules change, and cities can set their own minimums. Check the linked official sources, or ask an employment lawyer, before changing how you handle tips.