There is a federal minimum wage. In addition, many states have their own minimum wage which sometimes is higher than the federal minimum wage. The rule of thumb is whatever benefits the employee more is what is to be followed. So knowing what the minimum wage in your state is important.
Anyone in the hospitality industry has a lower minimum wage. Hospitality workers can be paid a lower minimum wage provided that their tips make up at least the difference between the regular minimum wage and the lower minimum wage.
In addition to minimum wage, different states have a different overtime rule. First of all it is important to know who is and who is not exempt from overtime. Again, job duties determine that. Federal law requires overtime be paid to a worker who works more than 40 hours in a workweek. There are some states that have stricter rules. It’s important for employers to know these requirements.
If you have more questions, I suggest consulting with an experienced HR professional.
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