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Federal regulations include exemptions that allow employers to pay certain types of workers less than the minimum wage, including youth and farm workers. But the largest population is workers at restaurants and bars who also receive tips. Federal law allows employers to pay these workers $2.13 an hour, though states are allowed to set their own rules. Minnesota and Montana are two of just seven states that do not allow employers to pay tipped workers less than minimum wage.
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A minimalist picture
Outside the controversy of employment effects of higher minimum wages, the population of low-wage workers and jobs is changing in subtle ways
Ron Wirtz is a Minneapolis Fed regional outreach director. Ron tracks current business conditions, with a focus on employment and wages, construction, real estate, consumer spending, and tourism. In this role, he networks with businesses in the Bank’s six-state region and gives frequent speeches on economic conditions. Follow him on Twitter @RonWirtz.
