Shelley is a waitress at one of the outlets of Bean Foods, a multinational restaurant chain. Her hourly salary is $3. She generally earns $10 as tip every month. In June, 2012, she received
$40 as tip. The next month, her employer reduced her hourly wage to $2. Is the employer's action legal in the context of the Fair Labor Standards Act (FLSA)? If not, how much should Bean Foods pay Shelley?
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