Tips Belong to the Worker
26 M.R.S. § 664 — a tip credit of up to half the minimum wage, and card tips paid by the next payday
An employer may count tips toward a service employee's wage, but the tip credit may not exceed 50% of the minimum hourly wage, and wages and tips together reach at least the minimum each workweek. When actual tips fall short of the credit, the employer makes up the difference.
Who handles this in Maine: Maine Department of Labor, Labor Standards; and legal aid programs and the state offices, listed in the Maine directory.
- Tips are the employee's property and may not be shared with the employer.
- Tips added to the bill or charged to a card are treated like cash tips.
- A card tip is paid by the next regular payday, without waiting for the card company, and the card processing fee may not come out of it.
- An employer using the credit tells the employee in advance the direct wage, the credit, and any tip pool contribution; the credit cannot be used for an employee who was never told.
Sources for this section (1)
- 26 M.R.S. § 664 — Minimum wage; overtime rate
Legal information, not legal advice. Verified as of October 2026. Applying it to a particular situation is the work of a licensed Maine attorney.