Mississippi restaurant pay rules (2026): what to pay tipped and non-tipped staff

Mississippi has no minimum wage law of its own; a 2026 bill to set one at $10.00 an hour died in committee in February (HB 108 (2026)). So a restaurant the federal Fair Labor Standards Act (FLSA) covers pays at least $7.25 an hour, or a $2.13 cash wage to tipped staff whose tips make up the rest (US DOL, state minimum wage laws). A business with $500,000 or more in yearly sales is covered, and a smaller one can be too, through staff whose work regularly involves commerce across state lines (DOL Fact Sheet #14). What Mississippi does require of every employer is E-Verify for each new hire (Mississippi Employment Protection Act).
This page puts Mississippi's figures in one place. It covers what you owe tipped staff like servers and bartenders, what you owe everyone else, and two example weeks with the math shown. Every figure links to the official page it comes from.
This is general information, not legal advice. Whether a rule applies can depend on your business's size and your own facts; the note at the end says more.
Mississippi pay rules at a glance
As of November 4, 2026:
Rule | Mississippi |
|---|---|
Minimum wage | $7.25 an hour, since July 24, 2009 (the federal rate; Mississippi sets no higher one) |
Tipped employees: minimum cash wage | $2.13 an hour, if you take the tip credit |
Maximum tip credit | $5.12 an hour |
Who counts as tipped | Customarily and regularly receives more than $30 a month in tips |
Overtime | 1.5× the regular rate after 40 hours in a workweek; no daily overtime |
Meal and rest breaks for adults | Not required by Mississippi or federal law |
Sources: US DOL, minimum wage; US DOL, tipped wages by state; US DOL, overtime; US DOL, state meal periods; US DOL, state rest periods.
Who counts as a tipped employee in Mississippi
Mississippi has no threshold of its own, so the federal one applies: a tipped employee is someone who customarily and regularly receives more than $30 a month in tips (US DOL, tipped wages by state).
In a restaurant that usually means servers, bartenders, bussers and counter staff who serve customers, including baristas who get tips. Cooks and dishwashers usually aren't tipped employees. Only tips the employee actually receives count. If someone works two jobs, say a server who also works prep shifts, the tip credit applies only to the hours in the tipped job (DOL Fact Sheet #15).
What you must pay tipped staff in Mississippi
Servers, bartenders, bussers and baristas who get tips can be paid a lower cash wage, with part of their tips counted toward the minimum wage. That's the tip credit, and it comes with conditions:
- Pay at least $2.13 an hour in cash wages. That's the $7.25 minimum wage minus the most you can credit from tips, $5.12 (US DOL, tipped wages by state).
- Cash wages plus tips must reach $7.25 for every hour worked, week by week. If tips fall short in a workweek, you pay the difference by the regular payday for that week (DOL Fact Sheet #15).
- Tell them first. Before you take the tip credit, tell each tipped employee, in writing or out loud: the cash wage you pay, the tip credit you claim, that the credit can't be more than the tips they actually get, that they keep all their tips except through a valid tip pool, and that the credit doesn't apply unless you've told them all this (DOL Fact Sheet #15).
- Overtime is figured on the full minimum wage. An overtime hour is worth 1.5 × $7.25 = $10.875. After the $5.12 tip credit, you pay at least $5.755 of it in cash wages (DOL Fact Sheet #15).
You don't have to take the tip credit. If you pay tipped staff the full $7.25 an hour, their tips are all on top, there's nothing to make up at the end of the week, and you can put kitchen staff in the tip pool (see below).
What you must pay non-tipped staff in Mississippi
Cooks, dishwashers, prep cooks, and cashiers or counter staff who don't get tips are paid like any other hourly employee:
- At least $7.25 an hour for every hour worked (US DOL, minimum wage). No tip credit applies.
- The same goes for a tipped employee's hours in a non-tipped job, like a server's prep shift (DOL Fact Sheet #15).
- Overtime is at least 1.5 times their regular rate for hours over 40 in a workweek. At $7.25 an hour, that's $10.875 (US DOL, overtime).
- Can they share in the tip pool? Only if you take no tip credit and pay everyone in the pool at least the full minimum wage. If you take a tip credit, a pool you require can include only staff who customarily and regularly receive tips (US DOL, tips). Managers and supervisors can never take from the pool.
Worked examples (made-up numbers)
The names, hours and tips below are made up. The rates are the federal ones that apply in Mississippi as of November 4, 2026.
A server's week: when you have to top up
Sam is a server paid the $2.13 cash wage. He works 31 hours in each of two weeks: a busy one with $400.00 in tips and a slow one with $100.00.
Busy week | Slow week | |
|---|---|---|
Hours worked | 31 | 31 |
Cash wages (31 × $2.13) | $66.03 | $66.03 |
Tips received | $400.00 | $100.00 |
Cash wages + tips | $466.03 | $166.03 |
Minimum for the week (31 × $7.25) | $224.75 | $224.75 |
You pay on top | $0.00 | $58.72 |
In the slow week, $100.00 in tips covers only part of the $158.72 tip credit (31 × $5.12), so you pay the difference by the regular payday: $224.75 − $166.03 = $58.72. In the busy week you owe nothing extra, and every dollar of tips is still Sam's.
A cook's week with overtime
Ana is a line cook paid the federal minimum wage, $7.25 an hour. Over five days she works 10, 9, 9, 8 and 10 hours: 46 hours in all.
Hours | Rate | Pay | |
|---|---|---|---|
Regular hours | 40 | $7.25 | $290.00 |
Overtime hours (over 40) | 6 | $10.875 (1.5 × $7.25) | $65.25 |
Total | 46 | $355.25 |
Overtime is counted by the workweek, and hours can't be averaged across two weeks: a long week earns overtime even if the next one is short (US DOL, overtime). Bonuses can change the rate too; see Time clock, breaks and overtime: first-month payroll mistakes to avoid.
Tip pooling rules in Mississippi
No specific Mississippi rule found — federal rules apply (US DOL, tipped wages by state). Under federal law (US DOL, tips):
- The business, its managers and supervisors never keep employees' tips. A manager can't take anything from a pool; they may keep only tips for service they directly and solely provide. An owner with a real stake who helps run the business counts as a manager too.
- With a tip credit, a pool you require can include only staff who customarily and regularly receive tips: servers, bartenders, bussers, counter staff who serve customers.
- Without a tip credit, when everyone in the pool gets at least the full minimum wage, you can include cooks and dishwashers.
- Card fees: you may reduce a card tip by the percentage the card company actually charges you, and no more (DOL Fact Sheet #15).
- Service charges aren't tips. Money you share with staff from a mandatory service charge is wages, and it counts in the regular rate for overtime (DOL Fact Sheet #15).
- Pay pooled tips out by the regular payday for the week or pay period (DOL Fact Sheet #15).
How to split a pool fairly, with a worked example: Tip pooling for new restaurant owners.
Overtime in Mississippi
Mississippi has no overtime law of its own (US DOL, state minimum wage laws), so the federal rule applies: non-exempt employees get at least 1.5 times their regular rate for hours over 40 in a workweek (US DOL, overtime).
A workweek is any fixed, recurring stretch of seven days that you choose, and hours can't be averaged across two weeks. There's no daily overtime, no double time and no seventh-day premium under Mississippi or federal law, and weekend or holiday hours don't earn a premium by law.
For tipped staff, overtime is figured on the full minimum wage, not the cash wage (see the tipped section above).
Breaks in Mississippi
- Meal breaks: No specific Mississippi rule found — federal rules apply (US DOL, state meal periods). The FLSA does not require meal periods. A bona fide meal period (typically 30+ minutes) is not work time (US DOL, breaks).
- Rest breaks: No specific Mississippi rule found — federal rules apply (US DOL, state rest periods). The FLSA does not require breaks. Short breaks an employer offers (about 5 to 20 minutes) are paid work time (US DOL, breaks).
- Minors: No separate Mississippi rule for minors; the adult rules above apply to them too (US DOL, state meal periods).
Other Mississippi rules that affect pay
- Paid sick leave: No specific Mississippi rule found — federal rules apply (Miss. Code § 17-1-51). No federal paid sick leave requirement. The FMLA provides unpaid, job-protected leave (up to 12 weeks) where it applies (US DOL, sick leave).
- Food handler training: A certified food protection manager is required, not a card for every employee. Who: the permit holder or a designee must hold an approved manager certification (Miss. food regulations).
Hiring and paydays
- E-Verify. Every employer registers with the federal status verification system and uses it for every new hire, and an employer that doesn't can lose its state licenses and permits for up to a year (Mississippi Employment Protection Act).
- No payday law for restaurants. Mississippi's payday statute covers only manufacturers with 50 or more employees and public service corporations (US DOL, state paydays), so a restaurant sets its own regular paydays.
Teenagers, alcohol and food safety
- Teen hours. Mississippi's own hours law reaches only mills, canneries, workshops, factories and manufacturing, so a restaurant follows the federal rules: where a state child labor law is less restrictive, the federal law applies (US DOL, state child labor). For 14- and 15-year-olds, that means no more than 3 hours on a school day, and only between 7 a.m. and 7 p.m. (9 p.m. from the start of June through Labor Day); 16- and 17-year-olds can work unlimited hours in jobs that aren't hazardous (DOL Fact Sheet #43).
- Alcohol. Where alcohol is licensed, staff 18 or older may wait tables, take orders and bring drinks to the table, but only someone 21 or older can tend bar (Miss. ABC, FAQs). The ABC hasn't required employee identification cards for servers since March 3, 1999, though owners and managers still hold them (Miss. ABC, FAQs).
- Food managers at alcohol-licensed restaurants. On top of the health department's rule above, a restaurant with an on-premises alcohol permit employs at least one manager or supervisor certified as a food manager (Miss. ABC regulations).
Local rates in Mississippi
Mississippi law bars counties and cities from requiring private employers to pay a minimum wage other than the state or federal one (Miss. Code § 17-1-51). The same 2013 law bars them from setting a minimum number of vacation or sick days, paid or unpaid. So the federal $7.25 minimum wage applies everywhere in Mississippi, and there's no local rate table for Mississippi.
How Mays helps
Mays runs the schedule, time clock, tip pool and payroll export for each location. For Mississippi pay rules, that means:
- Positions and wages. Give each position a default hourly wage, for example the tipped cash wage for servers and at least the minimum wage for cooks. Turn on Labor law compliance and Mays looks up each location's minimum wage from its address and warns you when a position's default wage, someone's hourly wage or a punch is below it, comparing tipped positions with the tipped cash wage when it has that figure. It never blocks the save.
- A tip pool per location. Split pooled tips by hours worked, equally or by FTAR score, per pay period or day by day, and choose which positions receive. Until you pick positions under Who receives, the positions marked Tipped share the tips; if no position is marked, everyone who worked does, cooks included. So if you take a tip credit, tick Tipped position only on positions whose staff get tips, or pick them yourself. A punch with no position counts under its shift's position, or else the person's primary or only position at that location; with neither, its hours get no share, and the tip pool card shows how many punches that leaves out. Leave managers and admins out of the pool is on by default, so leave it on. The tips come from your connected POS at that location (Square or Union) or from tips synced with 7shifts time punches, and each person's share appears in the Tip Payouts report and the payroll export. If you take your card processor's fee out of card tips, turn on Labor law compliance and Deduct the card processing fee from card tips: Mays deducts only your processor's percentage, split in proportion to each person's card tips, and shows it on the pay period and in the export.
- The tip-credit make-up is yours to check. Mays doesn't compare a tipped employee's cash wages plus tips with the minimum wage, so check each workweek the way the server example above does.
- Time clock and timesheets. Staff clock in on their phone, a shared kiosk or an NFC tag. Timesheets run by pay period. Overtime is counted by the workweek, and with Labor law compliance on, by any daily, double-time and seventh-day rule the location's state sets too, which Mays reads from its address; the schedule's labor cost, the reports and the pay summary all include it.
- Payroll export. A standard CSV or a Gusto-format CSV with regular and overtime hours and pooled tips for each employee. A card surcharge you share with staff goes in as wages, not tips.
- Food protection manager certificate. Turn on Labor law compliance and keep your certified manager's certificate in Mays with its expiry date. Each location shows whether someone there holds a valid one, and Mays reminds them and their managers before it expires.
- Wages per person. Open the person under Locations & Users → Users, and on Locations & pay pick the positions they work at each location. Pay uses each position's default wage unless you enter an hourly wage of their own under Pay. Mays doesn't run E-Verify, so do that check when you hire.
Sources
Every figure on this page comes from these official pages, as they read on the date shown.
- Mississippi Legislature, HB 108 (2026), bill history, checked September 24, 2026
- US Department of Labor, state minimum wage laws, checked September 24, 2026
- US Department of Labor, Fact Sheet #14: coverage under the FLSA, checked September 24, 2026
- Mississippi Legislature, SB 2988 (2008), the Mississippi Employment Protection Act, checked September 24, 2026
- US Department of Labor, federal minimum wage, checked September 24, 2026
- US Department of Labor, minimum wages for tipped employees by state, checked September 24, 2026
- US Department of Labor, overtime pay, checked September 24, 2026
- US Department of Labor, state meal period requirements, checked September 24, 2026
- US Department of Labor, state rest period requirements, checked September 24, 2026
- US Department of Labor, Fact Sheet #15: tipped employees under the FLSA, checked September 24, 2026
- US Department of Labor, tips under the FLSA, checked September 24, 2026
- US Department of Labor, breaks and meal periods, checked September 24, 2026
- US Department of Labor, sick leave, checked September 24, 2026
- Mississippi Legislature, HB 141 (2013), Miss. Code § 17-1-51 (no local minimum wage or leave mandates), checked September 24, 2026
- Mississippi food regulations (Miss. Admin. Code, Mississippi State Department of Health), checked September 24, 2026
- US Department of Labor, state payday requirements, checked September 24, 2026
- US Department of Labor, state child labor standards, checked September 24, 2026
- US Department of Labor, Fact Sheet #43: child labor provisions for nonagricultural occupations, checked September 24, 2026
- Mississippi Department of Revenue, ABC FAQs, checked September 24, 2026
- Mississippi Alcoholic Beverage Control regulations (35 Miss. Admin. Code Part II), checked September 24, 2026
This page is general information, not legal advice. Laws change, and coverage rules (your business's size, whether federal law covers you) decide which of them apply. Check the pages above, and ask an employment lawyer or accountant about your situation.
Run Mississippi payroll on the right numbers
Set each position's wage, turn on the tip pool with managers left out, and let the time clock count overtime by the workweek. Then payroll is an export, not an evening.
Start your free trial: 30 days, every module, no card needed. Setting up a tip pool? Read Tip pooling for new restaurant owners.