Which of the following statements is true of minimum wages in the United States?

Question

Quizplus · Accepted Answer

States have the power to set minimum wages higher than the federal minimum wage. For example, the minimum wage in California is $13 per hour compared to the federal minimum wage of $7.25 per hour.

Answer: D 
 An employee who earns in tips must be paid a minimum wage by the employer. However, the employer can pay a lower cash wage if the employee earns enough tips to make up the difference between the cash wage and the federal minimum wage. This is known as a tip credit.

Which of the Following Statements Is True of Minimum Wages