State Guide · Georgia

Georgia Tip Pooling Laws Explained

Georgia has no effective state tip law of its own — the federal FLSA is the rulebook. That makes Georgia one of the simplest states on paper, and one where the details of federal compliance matter most.

Last updated July 2026 · 6 min read

Georgia's state minimum wage ($5.15) is below the federal minimum and doesn't apply to employers covered by the FLSA — which is nearly every restaurant. In practice, federal law is the whole rulebook for tips in Georgia: the $7.25 minimum, the $2.13 tipped cash wage, and the FLSA pooling rules.

The full federal tip credit

Georgia employers may pay tipped employees the federal floor of $2.13 per hour and take the maximum $5.12 tip credit, provided tips bring total pay to at least $7.25 for the workweek. That's the largest tip credit in the country — which means the make-up-the-difference obligation bites hardest here on slow weeks. Check every pay period, not just busy ones.

Who can share in a Georgia pool

While taking the tip credit, pools may include only customarily and regularly tipped employees — servers, bartenders, bussers, runners, hosts who interact with guests.
Cooks and dishwashers may be included only if you pay everyone the full $7.25 and take no tip credit.
Managers, supervisors, and owners never share — a duties-based test under the 2018 FLSA amendments, no matter what the title says.

The federal fine print still applies

Simple state, strict details

No state overlay doesn't mean no rules. The federal 80/20 side-work rule, the notice requirement before taking a tip credit, and the ban on the house keeping any portion of tips all apply in full in Georgia — and federal enforcement doesn't need a state statute to collect back wages.

Employees must be told about the tip credit before it's taken.
Side work beyond 20% of the week (or 30 continuous minutes) must be paid at $7.25.
Card-processing fees may be deducted from card tips only in true proportion to cost.
Service charges (large-party autogratuities) are not tips — they're wages if distributed.

Georgia compliance checklist

Verify tips bring every tipped employee to $7.25 each workweek — top up when they don't.
Give written tip-credit notice before the first shift.
Keep the pool to customarily-tipped roles while taking the credit.
Track side work against the 80/20 line.
Write the pool formula down and log every distribution.

With a $5.12 tip credit on the line, records are the whole ballgame. Divvy applies your written formula to every check and keeps a per-payout audit trail. Start with the federal guide — it's the law in Georgia — or compare Florida and Texas nearby.

Frequently asked questions

Is tip pooling legal in Georgia?

Yes. Federal FLSA rules govern in Georgia: mandatory tip pools are legal, limited to customarily-tipped employees while a tip credit is taken, and managers, supervisors, and owners can never share.

What is the tipped minimum wage in Georgia?

The federal floor: $2.13 per hour in cash, with a tip credit of up to $5.12, as long as tips bring total pay to at least $7.25 for the workweek. Georgia's own $5.15 minimum doesn't apply to FLSA-covered restaurants.

Can kitchen staff share in a Georgia tip pool?

Only if the employer pays everyone the full $7.25 minimum wage and takes no tip credit. While the tip credit is taken, pools are limited to employees who customarily and regularly receive tips.

Does the 80/20 rule apply in Georgia?

Yes. The federal 80/20 rule applies in full: time spent on directly-supporting side work beyond 20% of the workweek (or 30 continuous minutes) must be paid at the full $7.25 minimum wage.

This guide is general information, not legal advice. Tip laws change and vary by state and city. Verify current rules with the U.S. Department of Labor, your state labor agency, and a qualified employment attorney before setting your tip policy.