Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $80 p

Question

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 $ 85.20
The correct answer is is $85.20. Can someone tell me how to get to that solution?

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 $ 5.20
The correct answer is is $5.20 Can someone tell me how to get to that solution?

Explanation / Answer

Solution a:

As per provision for fair labor standard act, Employer is required to pay $2.13 per hour to tipped employees if that amount plus tip received equal at least the minimum wages i.e $7.25 per hour.

Minimum wages for 40 hours work week = 40 *$7.25 = $290

Therefore including tip Ben lieber can easly reach at its minimum wages. Therefore minimum amount of wages that lieber must receive after tip credit = 40 * $2.13 = $85.20

Solution b:

Additional amount Harbor house should pay to lieber to meet the minimum wages requirement = $85.20 - $80 = $5.20

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