Wyoming Subminimum Wage & Tipped Employee Guide 2026
- Wyoming adheres to the federal minimum wage of $7.25 per hour for non-tipped employees.
- Employers in Wyoming can pay tipped employees a direct cash wage as low as $2.13 per hour, provided tips bring the total wage to at least $7.25 per hour.
- Tipped employees with household incomes between $15,060 and $60,240 (100-400% FPL for a single person) may qualify for significant ACA health insurance subsidies.
- Wyoming has not expanded Medicaid; adults below 100% FPL ($15,060 for a single person) without dependent children typically fall into a coverage gap.
Get Your Free Health Insurance Quote
A licensed agent can compare coverage options for you at no cost.
You're all set!
A licensed agent will reach out shortly.
Wyoming's Minimum Wage and Tip Credit Rules
Wyoming does not have a state-specific minimum wage that exceeds the federal standard. Therefore, the federal minimum wage of $7.25 per hour applies across the state for non-tipped employees. For employees who regularly receive more than $30 per month in tips, employers can utilize a "tip credit." This allows employers to pay a direct cash wage of as little as $2.13 per hour, as long as the tips received by the employee, when added to this direct wage, total at least $7.25 per hour for all hours worked. If an employee's tips do not bring their total earnings up to the federal minimum wage, the employer is legally obligated to make up the difference. This structure means that while direct wages may be low, the combined income is intended to meet the federal floor.Impact of Tipped Income on Health Insurance Eligibility
For tipped employees in Wyoming, accurately calculating household income is essential for determining eligibility for health insurance subsidies on HealthCare.gov. Your Modified Adjusted Gross Income (MAGI), which includes your direct wages and tips, dictates the level of financial assistance you can receive. Since Wyoming has not expanded Medicaid, adults without dependent children generally do not qualify for Medicaid, regardless of income. Instead, marketplace subsidies begin at 100% of the Federal Poverty Level (FPL). Individuals below this threshold fall into a coverage gap, unable to access either Medicaid or marketplace subsidies.| Household Size | 100% FPL | 138% FPL | 150% FPL | 200% FPL | 250% FPL | 400% FPL |
|---|---|---|---|---|---|---|
| 1 person | $15,060 | $20,783 | $22,590 | $30,120 | $37,650 | $60,240 |
| 2 people | $20,440 | $28,207 | $30,660 | $40,880 | $51,100 | $81,760 |
| 3 people | $25,820 | $35,632 | $38,730 | $51,640 | $64,550 | $103,280 |
| 4 people | $31,200 | $43,056 | $46,800 | $62,400 | $78,000 | $124,800 |
| +1 additional | +$5,380 | +$7,424 | +$8,070 | +$10,760 | +$13,450 | +$21,520 |
Recommended Health Plan Tiers for Tipped Employees
The most suitable ACA plan tier for a tipped employee in Wyoming depends heavily on their projected annual income, which can fluctuate due to tips. Understanding these income thresholds is key to maximizing health insurance affordability, especially considering the availability of Premium Tax Credits (APTCs) and Cost-Sharing Reductions (CSRs).| Income Level (Single) | FPL % | Recommended Tier | Monthly Net Premium | Why |
|---|---|---|---|---|
| Under $15,060 | Under 100% FPL | Coverage Gap | Varies (full cost) | Wyoming has not expanded Medicaid; no marketplace subsidies below 100% FPL. |
| $15,060–$22,590 | 100–150% FPL | Silver (CSR Tier 1) | ~$0–$30 | Highest subsidies & CSRs; low deductible, OOP max ~$1,000. |
| $22,590–$30,120 | 150–200% FPL | Silver (CSR Tier 2) | ~$30–$100 | Significant subsidies & CSRs; OOP max ~$2,000; typically better than Bronze. |
| $30,120–$37,650 | 200–250% FPL | Silver (CSR Tier 3) or Gold | ~$100–$200 | Moderate subsidies & CSRs; Gold may offer better value if high expected use. |
| $37,650–$60,240 | 250–400% FPL | Gold or HDHP | Varies | Partial subsidies; Gold for more coverage, HDHP+HSA for healthy individuals. |
| Above $60,240 | Above 400% FPL | HDHP+HSA (on or off-exchange) | Varies | Reduced or no APTC; HSA offers triple tax advantage for those with high deductibles. |
Understanding Income Fluctuations and ACA Marketplace Coverage
Tipped employees often experience variable income, which can complicate health insurance planning. The ACA marketplace uses your projected annual Modified Adjusted Gross Income (MAGI) to determine subsidy eligibility. It is critical to accurately estimate your total income, including all direct wages and tips, for the entire plan year. If your income changes significantly during the year, you must report these changes to HealthCare.gov. Failure to do so could result in incorrect subsidies, leading to either owing money back at tax time or missing out on additional financial assistance. For example, if your income decreases, you might qualify for higher subsidies or even a different tier of Cost-Sharing Reductions, making your health insurance even more affordable.Health Insurance in Wyoming: What Tipped Employees Need to Know
In Wyoming, tipped employees access health insurance primarily through HealthCare.gov, the federal marketplace. This platform is where you can apply for Premium Tax Credits (APTCs) and Cost-Sharing Reductions (CSRs) to make coverage more affordable. Wyoming's marketplace offers both EPO and PPO plan structures, providing a range of choices in terms of provider networks and flexibility. Unlike states that have expanded Medicaid, Wyoming's Medicaid program has strict income limits, especially for adults without dependent children. Pregnant women in Wyoming may qualify for Medicaid up to 159% FPL, which can be a critical resource for maternity care.Enrollment Steps for Tipped Employees in Wyoming
Navigating health insurance options as a tipped employee can seem daunting due to variable income, but following these steps can simplify the process:- Estimate Your Annual Income: Carefully project your total annual income, including all direct wages and an average of your tips. Be realistic about potential fluctuations and consider a slightly conservative estimate to avoid owing subsidies back.
- Visit HealthCare.gov: Go to HealthCare.gov to explore available plans in Wyoming. This is the only place to apply for Premium Tax Credits (APTCs) and Cost-Sharing Reductions (CSRs).
- Apply During Open Enrollment or Special Enrollment: Enroll during the annual Open Enrollment Period, typically in the fall, or if you qualify for a Special Enrollment Period (SEP) due to a life event like moving, marriage, or losing other coverage.
- Report Income Changes: If your income or household size changes significantly during the year, immediately update your information on HealthCare.gov to ensure your subsidies are accurate.
- Consult a Licensed Agent: Consider working with a licensed health insurance producer. They can help you compare plans, understand your subsidy eligibility, and enroll in coverage, often at no cost to you.
Frequently Asked Questions
What is Wyoming's minimum wage for tipped employees in 2026?
Wyoming follows the federal minimum wage of $7.25 per hour for non-tipped employees. For tipped employees, the direct cash wage can be as low as $2.13 per hour, provided that the employee's tips, when combined with the direct wage, equal at least the federal minimum wage of $7.25 per hour. If the combined amount does not reach $7.25 per hour, the employer must make up the difference.
How does income from tipped employment affect ACA health insurance subsidies in Wyoming?
Income from tipped employment, after accounting for any applicable business deductions, contributes to your Modified Adjusted Gross Income (MAGI), which is used to determine eligibility for Affordable Care Act (ACA) subsidies. If your MAGI falls between 100% and 400% of the Federal Poverty Level (FPL), you may qualify for Premium Tax Credits (APTCs) to lower your monthly health insurance premiums. Given Wyoming has not expanded Medicaid, individuals below 100% FPL without dependent children may fall into a coverage gap, unable to access either Medicaid or marketplace subsidies.
Can tipped employees in Wyoming get $0-premium health insurance plans?
Yes, many tipped employees in Wyoming may qualify for $0-premium health insurance plans on HealthCare.gov. These plans are typically Silver-tier plans where substantial Premium Tax Credits (APTCs) cover the entire monthly premium, resulting in a net cost of $0. This is most common for individuals or families earning between 100% and 150% of the Federal Poverty Level (FPL). Crucially, these plans also come with Cost-Sharing Reductions (CSRs), which significantly lower deductibles, copayments, and out-of-pocket maximums.
What is the employer's responsibility regarding tip credits in Wyoming?
Employers in Wyoming can take a tip credit, allowing them to pay tipped employees less than the federal minimum wage in direct wages, down to $2.13 per hour. However, the employer must ensure that the employee's tips, plus the direct wage, equal at least the federal minimum wage of $7.25 per hour for all hours worked. Employers must inform employees about the tip credit, allow employees to keep all tips (with exceptions for valid tip pools), and track tips to ensure the minimum wage requirement is met. Failure to do so means the employer cannot claim the tip credit and must pay the full minimum wage.