Can my retail job pay me less because I am a full-time student?

Jurisdiction: United States • Practice Area: Employment Law• Published October 23, 2026

The situation

I am currently working a part-time job at a local clothing boutique in Ohio, and I have been there since the beginning of January. I am also a full-time student at the local community college, so I thought I would be getting the standard minimum wage. However, when I received my first paycheck last Friday, I noticed that my hourly rate was significantly lower than the official state minimum wage. When I went to my manager to ask about it, she told me that because I am a full-time student and we are a retail establishment, the company is allowed to pay me a lower percentage of the regular wage as long as it stays above a certain amount. She mentioned there are specific rules about how many students can work there at once compared to the rest of the staff, but I didn't really understand what she meant. I already checked the state's basic minimum wage website, but it doesn't seem to mention anything about student discounts on pay. I am confused about whether it is actually legal for them to pay me a lower rate just because of my student status and if there is a limit on how many of my coworkers can also be on this lower pay scale.

Quick Summary

It depends on whether your employer has obtained a special certificate from the Secretary of Labor. If they have this certificate, they may be allowed to pay you a lower rate, but only if they follow specific rules regarding your hours and the number of students employed.

Detailed Analysis

Under federal law, specifically the Fair Labor Standards Act, employers in retail or service establishments can sometimes pay full-time students a lower wage than the standard minimum wage, but only if they have a special certificate [cite:us-title29-flsa-sec214]. Regarding your pay rate, the law states that the Secretary may provide for the employment "at a wage rate not less than 85 per centum of the otherwise applicable wage rate in effect under section 206 of this title or not less than $1.60 an hour, whichever is the higher" [cite:us-title29-flsa-sec214]. This means that if your boutique has this certificate, they can pay you 85% of the regular minimum wage, provided that amount is at least $1.60 per hour. Your manager's comment about limits on student staff refers to rules about the proportion of student workers. The law says that "the proportion of student hours of employment to the total hours of employment of all employees in such establishment for the corresponding month... may not exceed" certain limits, such as "a proportion equal to one-tenth of the total hours of employment of all employees in such establishment" [cite:us-title29-flsa-sec214]. This is a rule designed to ensure that hiring students at lower wages does not unfairly reduce job opportunities for other workers. Additionally, students working under these certificates must be employed on a "part-time basis and not in excess of twenty hours in any workweek" [cite:us-title29-flsa-sec214]. It is unclear if your specific employer actually holds a valid special certificate or if they are simply misinterpreting the law. It is also unknown if your hours exceed the 20-hour weekly limit allowed for students under these certificates. If they are paying you less without a certificate, they may be in violation of the law, which makes it "unlawful... to violate any of the provisions of section 206... or any of the provisions of any regulation or order of the Secretary issued under section 214" [cite:us-title29-flsa-sec215]. Please note that state, provincial, or local laws may provide higher minimum wage protections that override these federal allowances.

Statutory Citations

Legal Citation: Fair Labor Standards Act of 1938 § 29 U.S.C. § 214 — Employment under special certificates
"the Secretary... shall... provide, in accordance with subparagraph (B), for the employment, at a wage rate not less than 85 per centum of the otherwise applicable wage rate in effect under section 206 of this title or not less than $1.60 an hour, whichever is the higher, of full-time students"
View Official Legislation →
Legal Citation: Fair Labor Standards Act of 1938 § 29 U.S.C. § 214 — Employment under special certificates
"the proportion of student hours of employment to the total hours of employment of all employees in such establishment... may not exceed... a proportion equal to one-tenth of the total hours of employment of all employees"
View Official Legislation →
Legal Citation: Fair Labor Standards Act of 1938 § 29 U.S.C. § 215 — Prohibited acts; prima facie evidence
"it shall be unlawful... (2) to violate any of the provisions of section 206 or section 207 of this title , or any of the provisions of any regulation or order of the Secretary issued under section 214 of this title"
View Official Legislation →

Important Legal Disclaimer

General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.

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