Can an employer pay one employee more than the others because they are family?

Nepitism is a powerful thing in a small business.  Unfortunately, small business owners may pay their employees whatever they want as long as they are not violating the wage laws.  In other words, when family members have a busienss together, they take care of one another and do not get paid based on senority, hard work, credentials or merit.  Rather, the pay is based on their own discretion as they are all family.  If this means that one employee does not make as much becasue the owner wants to pay the family member more, then so be it.  Working in this type of environment is very difficult and often disppointing.  If your boyfriend does not like it there, then he should find a new job.

While unfair this is legal.  The reason is the most employment relationships are what is known as "at will".  This means that basically the employer can hire or fire someone for any reason or no reason whatsoever, as well has increase/decrease salary/hours, promote/demote, and generally impose requirements as they see fit.  In turn, you can work for an employer, or not, your choice. 

The only exceptions to the above would be if there is a stated company policy covering this, or there is a union/employment agreement that governs, or this situation has arisen due to some type of discrimination.

As long a minimum wage laws are followed no laws have been broken.  Thsi reminds me of the saying, "It's not what you know but who you know".