Are there any exceptions to minimum wage laws?

Yes, there are exceptions to minimum wage laws in Pennsylvania. Under federal law, tipped employees may be paid a reduced hourly rate of at least $2.83 per hour as long as their total earnings, including tips, are equal to or higher than the current minimum wage ($7.25 per hour). Additionally, employers may pay a lower minimum wage to certain types of employees such as those under 20 years of age, trainees, and student learners. Under Pennsylvania state law, certain employers may follow the federal guidelines regarding tipped employees, while employers in the retail or service business must pay the tipped employees a minimum wage of $2.83 per hour. Additionally, employers are allowed to pay people with intellectual or developmental disabilities based upon the individual’s ability rather than the state’s minimum wage laws. Finally, employees who work on a commission basis might be paid below the minimum wage. These employees must be paid an additional sum for hours worked, up to the minimum wage rate, so that their total earnings reach at least the minimum wage rate. Overall, while employers must pay their employees a minimum wage rate, there may be exceptions to this rule depending on the nature of the job, the type of employee, or the type of employer. These exceptions must be carefully considered and understood by both employers and employees in order to ensure they are paid fairly.

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