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The federal minimum wage is currently set at $7.25 /hour. However, in the state of Massachusetts, where Buddy's ice cream parlor resides, the minimum wage

The federal minimum wage is currently set at $7.25 /hour. However, in the state of Massachusetts, where Buddy's ice cream parlor resides, the minimum wage is currently set higher at $12.75 per hour. Which statement below accurately reflects the rate of pay at which Buddy's new employees starting out at the minimum wage would receive? Restaurants and other food service establishments are not covered under the FLSA. Therefore Buddy can set any starting wage in order to be competitive The new employees will receive $10 per hour which is the average of the federal minimum wage in the states minimum wage. The new employees will receive $12.75 per hour. When the states minimum wage is higher than the federal minimum wage, an employer must use the higher state minimum wage as its standard The new employees will receive $7.25 per hour. When the federal minimum wage is set lower than the state's minimum wage, an employer can go with the lower rate of pay as its standard

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