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are disproportionately in the sectors exempt from the minimum wage laws, such as restaurants, agriculture, and seasonal employment (like Six Flags and Schlitterbahn.) Workers under 20, full-time high school and college students, and some disabled employees are also exempt from minimum wage, but the businesses must have a certificate from the Dept of Labor to go sub-minimum and the baseline is 75% of minimum wage for high school and 85% for full-time college students.
For example, my daughter works in a restaurant. The restaurant has to guarantee that she ends up getting paid at least $7.25 per hour, BUT they are allowed to pay her as little as $2.13 per hour; she is expected to pick up the rest of her hourly wages in tips. Of course, she doesn't get to keep all her tips. She has to pay a percentage of her tips to the bar, the busser, and the dishwasher. Because she is required by her employer to share the wealth, this means that the dishwashers, bus help, and bar staff will receive more than $30 in tips each month, earning them the dubious distinction of being called "tipped employees" and also exempt from being paid minimum wage. If a server fails to report enough tips, the restaurant is required by law to make up the difference out of its own pocket. Believe me, a server doesn't last long if they're not pulling their weight in tips. She's worked in this restaurant for four years and now gets a whopping $2.67 an hour for serving--yet she is still not guaranteed a penny more than $7.25 an hour. It's permanent minimum wage hell. She now works most shifts as an expediter, because she's guaranteed $9.50 an hour. Her husband is a cook at the same restaurant, earning $13 an hour. However, she is often forced to pick up a shift as a server because they run out of money and she needs the instant cash tips provide.
Fortunately, she qualified for a Pell Grant and is going back to our community college this fall to become a sonography tech. The college already told her that she'd have to move to a larger city to get a job, but at least she's doing something to get out of the food service hellhole.
Agricultural employees are paid by the piece, be it box, bushel, or pound. You have to be fast to ever hope to hit minimum wage as a picker, plus you have to follow the harvest.
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