Question: Example 2-2 James Rudolph, a waiter, earns a weekly wage of $100.00 for a 40-hour workweek and receives tips of $100.00 each week. Even though

 Example 2-2 James Rudolph, a waiter, earns a weekly wage of

Example 2-2 James Rudolph, a waiter, earns a weekly wage of $100.00 for a 40-hour workweek and receives tips of $100.00 each week. Even though the hourly rate paid to Rudolph ($100.00 = 40 hours = $2.50) exceeds the minimum wage rate of $2.13, the employer must pay Rudolph an extra $90.00 so that the tips received plus the wages paid equal the minimum wage of $7.25 per hour. $7.25 x 40 = $290.00 Weekly wage (100.00) * (100.00) Tips received Extra weekly pay $90.00 *$100.00 + $90.00 = $190.00; $190.00 = 40 hours = $4.75/hour Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $80 plus tips for a 40-hour workweek. Lieber's weekly tips usually range from $280 to $400. Round your answers to the nearest cent. a. Under the Fair Labor Standards Act, the minimum amount of wages that Lieber must receive for a 40-hour workweek is 290 x b. Since Harbor House is in violation of the FLSA, the additional amount it should pay Lieber each week to meet the minimum wage requirement for a tipped employee is 2.50 x Feedback Check My Work a. Multiply minimum wage for a tipped employee x 40 hours. b. (Minimum wage for a tipped employee x 40 hours) - wages paid = additional wages needed to meet FSLA requirement

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!