Outline the minimum wage requirement established by the Fair Labor Standards Act. How are wages paid to a tipped employee?
What will be an ideal response?
The FLSA establishes minimum wage and overtime pay requirements for workers. The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked. The federal minimum wage is set by Congress and can be changed. The Department of Labor permits employers to pay less than the minimum wage to students and apprentices. An employer may reduce the minimum wage by an amount equal to the reasonable cost of food and lodging provided to employees. There is a special minimum wage rule for tipped employees. An employee who earns tips can be paid $2.13 an hour by an employer if that amount plus the tips received equals at least the minimum wage. If an employee's tips and direct employer payment does not equal the minimum wage, the employer must make up the difference. Over half of the states have enacted minimum wage laws that set minimum wages at a rate higher than the federal rate. Some cities have enacted minimum wage requirements, usually called living wage laws, which also set higher minimum wage rates than the federal level.
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