There are many conditions and exceptions
to the minimum wage laws. First, each state can
make its own minimum wage laws. However,
the state laws have to provide at least the mini-
mums in the federal law. Second, certain cate-
gories of workers can receive less than
minimum wages. Some of these categories
include student-learners and tipped employees.
HR must be up-to-date on all the details and
help the company comply with the laws and
regulations.
The category of tipped employees is espe-
cially important in the hospitality industry. A
tipped employee is a worker who receives tips
from customers, 17-9. Most restaurant servers
are tipped employees. The federal law estab-
lishes a lower minimum wage for tipped
employees. However, the tipped employee must
actually receive tips that make his or her mini-
mum wage meet the federal minimum wage. If
the tipped employee does not make enough in
tips, the employer must make up the difference.
For example, in 2009, the federal minimum
wage was $7.25 per hour and the federal mini-
mum wage for tipped employees was $2.13 per
hour. A tipped employee had to earn at least
$5.12 in tips each hour. Suppose the employee
made only $3.00 in tips an hour. Then the
employer must pay an additional $2.12 an hour.
The states can make stricter laws.
There are also a large number of complex
laws covering benefits. The only benefits that
employers are required to provide are FICA and
workers’ compensation. Employers often choose
to provide other benefits. Common benefits pro-
vided are health insurance and retirement bene-
fits. There are a large number of laws that cover
these benefits. The purpose of these laws is to
protect the rights of the workers. HR is responsi-
ble for keeping up-to-date on all these laws and
making sure that they are followed.
Safety Laws
The major safety law is the federal
Occupational Safety and Health Act of 1970
(OSH Act). The purpose of OSH Act is to assure
safe and healthful working conditions for all
workers. The OSH Act also established the
Occupational Safety and Health Administration
(OSHA). This agency makes sure that the laws
and regulations in the OSH Act are carried out.
One of the laws requires that employers display
a poster about the OSH Act, 17-10. The Spanish
version of this poster is in Chapter 20, Figure
20-4. More information on the OSH Act and
workplace safety can be found in Chapter 20.
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Part 4 The Business of Hospitality
17-9 Servers are in a category called tipped
employees.