Louisiana tipped wage: no state minimum, so federal rules apply

Louisiana is one of the few states that leave the minimum wage to Washington. A restaurant owner looking for the state rate in the labor department's pages will not find one, because there is none. This guide, checked in November 2026, explains what the absence means for a covered restaurant, how the federal tip credit works for servers and bartenders, and what to keep on file. It is general information, not legal advice. The U.S. Department of Labor's Wage and Hour Division is the place to confirm any figure.

What is the minimum wage in Louisiana?

The Department of Labor's state table, updated on November 5, 2026, lists Louisiana as having no state minimum wage law. Employers covered by the Fair Labor Standards Act must pay the federal minimum of $7.25 an hour. Most restaurants are covered, so plan payroll around $7.25 for any non-tipped job. Because the state sets no figure, a change in Louisiana will come from Congress or from a new state law, not from an annual adjustment, so watch the federal page for news.

How does the federal tip credit work?

For a tipped employee, federal law lets an employer pay a direct cash wage of at least $2.13 an hour and claim a tip credit of up to $5.12 an hour, based on the $7.25 minimum. The tips plus the cash wage must reach $7.25 for each workweek, and the employer makes up any shortfall. The credit is optional. An owner who prefers simpler payroll can pay the full minimum and let staff keep all tips, and many owners in a tight labor market do exactly that to attract experienced servers.

What notice must you give before taking the credit?

Before taking a tip credit, an employer must tell tipped employees five required items. They can be given orally or in writing. Without the notice, no tip credit is allowed, and you would owe the difference between the cash wage and the full minimum for every hour worked. Put the notice in writing, have the employee sign and date it, and file it with the new hire paperwork. A signed page is far easier to produce than a memory of a conversation.

How is overtime paid to tipped staff?

When a tip credit is taken, overtime is worked out on the full $7.25 minimum wage, not on the lower cash wage. The tip credit for an overtime hour cannot be more than the credit for a regular hour. Many point-of-sale and payroll systems default to the wrong base. Test your own setup on a real week: take a server who worked 45 hours, confirm the five hours over 40 are flagged and read the formula your payroll provider uses.

What happens when a worker does two jobs?

The department's fact sheet says that for dual jobs, no tip credit may be taken for hours worked in the non-tipped occupation. A server who spends a Monday morning on inventory, or a host who also washes dishes, should be paid the full minimum for the non-tipped hours. Keep time records that show which job was worked, in plain terms, so the hours are clear.

What records should you keep?

Keep time records, pay records, the signed tip credit notice and weekly tip totals for each tipped employee. If your restaurant pools tips, keep the written policy and the pool's records. Our separate guide on tip pooling and service charges explains who may share in a pool. Test every week that cash wages plus tips reached $7.25 an hour, and review any week with unusually low tips.

What does the missing state minimum mean for hiring and pay?

With no state rate to follow, the pay you offer is set by the market and by your own standards. Owners in busy dining districts often pay line cooks and dishwashers well above $7.25 because the job is hard and the labor pool is tight, and many pay servers the full minimum so that a slow Tuesday does not cost them a good employee. Whatever you choose, write the pay rate, the pay day and the overtime rule into the offer letter. If you choose the tip credit, say plainly in the same letter what the cash wage is. A clear letter prevents most pay disputes before they start.

What should you do next?

Pick one slow week and run the numbers for each tipped employee. Check that your notices are signed and filed, that overtime is calculated on the full minimum and that non-tipped work is paid at the full rate. Then read how pooling and service charges work, because they sit right beside the tip credit in the same federal rules.

More guides for your business:

• Louisiana tip pooling and service charge rules for restaurants
• Louisiana automatic gratuity, large parties and sales tax
• Louisiana sales tax on restaurant meals: state, parish and New Orleans

More in the US guides for food businesses.