Example 2-1

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 40 =	$290.00
Weekly wage	(100.00)*
Tips received	(100.00)
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 $

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 $

Note:In this chapter and in all succeeding work throughout the course,unless instructed otherwise, calculate hourly rates and overtime rates as follows:

1.	Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the over-time rate).
2.	If the third decimal place is 5 or more, round to the next higher cent.
3.	If the third decimal place is less than 5, simply drop the third decimal place.
Examples:	Monthly rate $1,827 Weekly rate ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $15.81

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.