Guaranteed salary/wage per hour before deductions Employers must lawfully abide by their state and local minimum wage laws for tipped and non-tipped positions. As minimum wage increases annually, even if it is in the middle of a J-1 Summer Work Travel program, employers must follow their state minimum wage laws and increase pay for any employees who’s wages do not meet the new state minimum. Participants should be compensated the higher of federal, state or local minimum wage. If an employee’s tips combined with their hourly wage do not meet the minimum wage requirement, the employer must make up the difference.