The Federal minimum wage law requires all employees to be paid at least $7.25 per hour. Some states and cities also have minimum wage laws that require the payment of an hourly rate that is higher than $7.25 Before you consider a minimum wage lawsuit, check your state and local city laws to see if you are entitled to a higher minimum wage. You want to claim the higher minimum wage rate.

Many restaurants, bars, and businesses in the service industry are permitted to pay their employees below the minimum wage as long as the employees are permitted to keep all their tips and the tips add up to at least the minimum wage per hour. Although an employer is permitted to pay a tipped employee as low as $2.13 per hour, your employer is required to demonstrate that you are making at least minimum wage once your tips are added to your regular pay. Also, issues frequently arise when employees are engaged in a “tip pool.” To calculate whether you are being paid minimum wage and more, please view Calculating Minimum Wage & Overtime.