What is the minimum wage in Idaho?

Per the U.S. Department of Labor, the basic minimum wage in Idaho is $7.25 per hour. Idaho follows federal minimum wage requirements along with 20 other states. An employee who works eight-hour shifts five days a week will earn $580 on a biweekly pay schedule and $15,080 per year.

Idaho minimum wage laws

The purpose of minimum wage laws in the United States is to ensure that employers offer and provide a fair base pay rate that reflects the current cost of living and protects workers in the event of changes in the economy. Certain employers may pay employees hourly rates that exceed the minimum wage; however, minimum wage laws are in place to ensure that workers are not paid rates that dip below federal requirements.

Employers in Idaho must follow federal minimum wage laws if they employ four or more workers, excluding family members. Additionally, under federal law, Idaho employers are allowed to pay employees under the age of 20 an hourly rate of $4.25 for the first 90 consecutive days of employment. This rate is referred to as a training wage.

Under Idaho minimum wage laws, employers can also obtain special licenses through the Department of Labor that allows them to pay student employees or apprentices a learners wage that is less than the federal minimum wage. In certain cases, the DOL may investigate the specific employment circumstances before issuing learners wage licenses.

As of July 24, 2009, the minimum wage in Idaho was changed from $6.55 per hour to $7.25 per hour. Employers are legally required to display posters that explain federal minimum wage laws and Idaho minimum wage laws in the workplace. Employers that do not follow federal and state minimum wage guidelines or fail to pay all monies due after employment separation may be subject to penalties up to $750. However, if wages owed are paid before the DOL files a state lien against the employer, the maximum penalty cannot exceed $500.

Idaho minimum wage for servers and other tipped employees

The Idaho minimum wage for servers and tipped employees is $3.35 per hour. In the Gem State, workers can only be considered tipped employees if they earn more than $30 in tips per month, and employers must reimburse employees who don’t make the state minimum wage when the $3.35 hourly rate is combined with their daily tips.

Employees and employers must document all tips earned to ensure that there are no discrepancies if and when reimbursements are required. In addition to reimbursing employees for combined wages that don’t meet the federal minimum, Idaho employers are required to prove that an employee’s hourly wage meets the federal minimum cash hourly wage of $2.13.

Several types of employees earn tips in addition to a minimum hourly rate. While food servers and bartenders are the most well-known tip-earning employees, other workers who earn tips include gaming dealers, cleaning service employees, food delivery drivers, movers and hair stylists. Employees report all earned tips to their employers at the end of each shift or at the end of each pay period, and employers calculate payroll checks by using a tip credit formula.

A tip credit is the dollar amount left after deducting the minimum tipped employee wage from the Idaho state minimum wage. For example, if an employer pays a minimum wage of $2.13, they would subtract this number from $7.25 to calculate the tip credit. In this scenario, the tip credit would be $5.12. When processing payroll, the tip credit should be multiplied by the number of hours an employee worked. The tip credit in Idaho is $3.90, and the minimum tipped wage is $3.35.

Tip pooling and tip outs

In some cases, employees pool their tips and divide the funds evenly amongst the group at the end of the shift. Tip pooling is common in the food service industry as it helps to ensure that all servers working the same shift receive equal pay. Employees at the same establishment who earn a straight hourly wage versus a tipped employee wage are generally exempt from receiving a portion of the pool.

When tip pooling occurs, each employee documents and reports his or her specific share. Idaho employers allow tip pooling; however, they must inform potential employees in advance whether tips are pooled or collected individually.

Another common practice with tipped employees is known as tipping out. This generally occurs in food service establishments, such as bars and restaurants. While specific requirements can vary based on the establishment’s rules, in general, servers must tally up their tips at the end of the shift and provide a certain percentage to the bussing staff and bartender if applicable. Employees who receive tip outs must follow the same rules as servers when documenting and reporting their earnings.

Idaho minimum wage overtime pay

In Idaho, employers must pay employees time-and-a-half for each hour that exceeds 40 hours in a given workweek. For example, if a full-time employee regularly works eight hours a day five days a week, time-and-a-half must be paid starting at 41 hours. Overtime rules apply to both exempt and covered employees in Idaho, and employees aren’t allowed to accrue more than 240 hours of compensatory time that can be put towards paid time off, except for certain professions, such as firefighters and law enforcement.

Idaho minimum wage FAQs

What states and cities have a $15 an hour minimum wage?

Idaho and its cities maintain a $7.25 minimum wage; however, certain employers may choose to pay employees a rate above the minimum. While Idaho doesn’t have a $15 per hour minimum wage, states that require this wage to be implemented by 2025 include Washington, D.C., California, Massachusetts, Maryland and New York.

What is the minimum wage for a 16-year-old in Idaho?

The minimum wage for 16-year-old employees in Idaho is $7.25 per hour for standard employees and $3.35 per hour for tipped employees. Employers may also obtain special licenses to pay a training wage of $4.25 per hour for a 16-year-old worker’s first 90 days of employment when applicable.

What is a livable salary in Idaho?

Idaho’s livable salary or living wage is $59,153 as of 2021. The livable salary for Idaho falls below the national average of $68,808; however, the median income in Idaho is $55,785. Additionally, studies show that Idaho’s utility costs are lower than other states, which contributes to its below-average living wage estimate.

What is the minimum a salaried employee can make in Idaho?

Per the Fair Labor Standards Act and the U.S. Department of Labor, the minimum salary for employees is $684 per week or $35,568 per year. Minimum salary requirements may vary from state to state, and currently, Idaho does not define specific criteria for bona fide employees to be considered exempt.

What is the federal minimum wage?

The federal minimum wage for nonexempt employees is $7.25 per hour as of 2021. Idaho follows federal guidelines that set the minimum wage at $7.25 per hour for standard employees and $3.35 per hour for tipped employees. Employers in Idaho can choose to pay employees hourly rates that exceed the federal minimum.