State Guide · Virginia

Virginia Tip Pooling Laws Explained

Virginia kept the federal $2.13 cash wage but raised its own minimum wage well above $7.25 — so the tip credit an employer must cover with tips is one of the largest in the country. Here's how Virginia tip pooling works.

Last updated July 2026 · 6 min read

Virginia is an unusual hybrid: its minimum wage is well above the federal $7.25 and adjusts with inflation, but the state never set its own tipped cash wage — so the federal $2.13 per hour still applies. The result is one of the widest tip-credit gaps in the country, and the whole gap must be covered by tips.

The wage math — and the trap

$2.13 is legal, but the target is the Virginia minimum

Employers may pay tipped employees as little as $2.13 in cash, but tips must bring every employee to the full Virginia minimum wage — not $7.25 — for the workweek. On slow weeks that's a big top-up, and getting it wrong is the most common Virginia wage claim.

Virginia otherwise follows the federal FLSA framework for tipped work, including the 80/20 side-work rule: the tip credit only covers time spent on tip-producing work and its directly supporting tasks, and supporting work is capped at 20% of the week (and 30 continuous minutes at a stretch).

Who can share in a Virginia pool

Mandatory tip pools are legal with advance notice.
While a tip credit is taken, pools are limited to customarily and regularly tipped employees.
If everyone earns the full Virginia minimum in cash, back-of-house may be included.
Managers, supervisors, and owners never share, under the federal duties test.

Card fees and service charges

The federal rules apply: an employer may deduct only the actual proportional card-processing fee from card tips, and mandatory service charges are not tips — they're house revenue unless distributed, and anything kept should be disclosed.

Virginia compliance checklist

Re-check the Virginia minimum every January — it adjusts, and the tip-credit gap grows with it.
Reconcile cash wage plus tips to the full state minimum every workweek.
Give tip-credit and pool notice before the first tipped shift.
Track side work — the 80/20 rule limits how much non-tipped time $2.13 can cover.
Keep per-shift distribution records for every pool.

When the tip credit is this large, proving every employee cleared the minimum is the whole game. Divvy keeps tips-versus-hours math per shift automatically. Start with the federal guide, or compare Georgia and North Carolina.

Frequently asked questions

What is the tipped minimum wage in Virginia?

The cash wage is the federal $2.13 per hour, but tips must bring the employee to the full Virginia minimum wage — which is well above $7.25 and adjusts annually — for each workweek. If tips fall short, the employer pays the difference.

Is tip pooling legal in Virginia?

Yes. Virginia follows the federal framework: mandatory pools among customarily-tipped employees while a tip credit is taken, back-of-house allowed when everyone earns the full minimum in cash, and managers and owners always excluded.

Does the 80/20 rule apply in Virginia?

Yes. Virginia follows the federal side-work rule: the tip credit only covers tip-producing work and directly supporting tasks, with supporting work capped at 20% of the workweek and 30 continuous minutes.

Can Virginia employers deduct card fees from tips?

Only the actual proportional card-processing cost, per the federal rule — and never below the 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.