If you are on stipend, do you still have to be paid your state minimum wage?

Question

I got hired as copy editor at my university newspaper. Your pay rate is based on a stipend, which is pretty much the same thing as being paid on salary. How they determine your stipend is take a percentage from your tuition and base it off of that. My contract says I am being paid for 2400 for 10 months of work. I am not sure if they take taxes out when you are paid on a stipend. Mathematically, without taxes, I would be making roughly $3 an hour if I would work about 20 hours a week, which is what is expected. In Ohio, minimum wage is $7 an hour. Is my university legally allowed to pay me under minimum wage even though I am on a stipend?

Answer 1

I worked about 20 hours a week on my university newspaper and got two units of upper division credit. You don't mention if course credit is included for you.

Answer 2

That's more in the category of a scholarship than a job with a paycheck.  So they don't have to pay minimum wage.