http://www.paywizard.org/main/minimum-wage/tipped-workers.
When paying your employees, it's of the utmost importance that you comply with the minimum wage laws established by both the federal government and your state. Under the federal law, the Fair Labor Standards Act (FLSA) requires that a minimum wage be established, and that generally all employees except those who are exempt be paid that minimum wage.
The Fair Minimum Wage Act of 2007 raised the federal minimum wage to $7.25 per hour effective July 24, 2009. This rate must be paid to all nonexempt employees for each hour worked up to and including 40 hours in a calendar workweek.
Any time beyond 40 hours must be paid as time-and-a half overtime, which works out to a current minimum of $10.88 per hour.
If you don't pay your employees on an hourly basis does that mean that the minimum wage law does not apply to you? In fact, the minimum wage doesn't just apply to hourly workers. The law doesn't require you to pay an employee on an hourly basis just because the law is stated that way; but it does require you to pay a covered employee for a workweek an amount that's at least equal to the minimum wage, multiplied by the hours worked. The employee may be paid on an hourly, a salary, a monthly, a piecework, or any other basis as long as the statutory minimum requirement of $7.25 per hour is satisfied.
Who Must Be Paid Minimum Wage?
Even though you may have already determined that all your employees — or at least a few individual employees — must be paid the minimum wage because of their nonexempt status, check to see if your employees fall into this list of occupations who don't need to be paid minimum wage under the FLSA (but are still protected by other provisions such as overtime pay and child labor laws):
students in institutions of higher learning
students working for schools.
employees in American Samoa and some employees in Puerto Rico
tipped employees, in conjunction with tip credit.
http://www.bizfilings.com/toolkit/sbg/office-hr/managing-the-workplace/employer-minimum-wage-law-requirements.aspx