Reply #7: Many employees are NOT covered by the FLSA

[TahitiNut]

This is a very common error folks make regarding "small business" and the minimum wage. The federal minimum wage is part of the FLSA (Fair Labor Standards Act) and, with some exceptions, smaller businesses are not covered by it, not are their employees.

Furthermore, the majority of "tipped employees" are covered only to the extent that their wages plus their tips must meet or exceed the minimum wage amount - their actual wage can be far smaller than $5.15/hour.