Yup! You surely have grounds for lawsuit. Your company has to pay you at least the minimum wage. That is certainly your right! Go… fight for it woman!

 The law regarding tip differential allowance includes a provision that you must make enough in tips to bring your wage up to minimum when divided across the number of hours which you work. This is calculated using something called

 First, some background. There are two things which could be referred to as "differential" here. One is shift differential - this is an amount which you receive as an addition to your hourly rate for working certain hours (such as the graveyard shift). The other is the tip differential, which is the focus of what I am about to write. Tip differential allows for employers in certain states to pay less than the state's minimum wage specifically for employees who will make enough in tips or other compensation to bring their total pay up to the equivalent of minimum wage. This is calculated using the regular rate of pay. For example, let's say you make $5.50 an hour across a 40 hour week. This is $220.00 gross. The total gross for $7.15 an hour across a 40 hour week is $286.00. This means that you are short by $66.00 per week to meet minumum wage. In order to bring your regular rate of pay up to meet minimum wage your employer would have to either increase your rate of pay to $7.15, or provide other compensation (such as tips) in the amount of at least $66.00. When the $66.00 is added to the $220.00, it brings us to $286.00. We can divide this figure by 40 to find your new regular rate of pay ($7.15) which would make it legal again. If you are receving no other compensation except your base pay, or you are receiving less than $66.00 a week in additional compensation, then it is likely that your employer is illegally paying you below minimum wage. I would recommend immediately contacting your local labor board, or (if it is feasible) obtaining the services of an attorney willing to work on contingency to help with fighting your case - although you may find you have less money at the end of the day by going this route. I wish you the best of luck in obtaining the additional compensation which you are likely due.