What’s the minimum wage? Minimum wage is the lowest level that an employer must pay an hourly worker. The hourly minimum wage rate you will be compensated is based on the state in which you work and the kind of job that you are working at.
The minimum wage was enacted in the United States in 1938 as a part of the Fair Labor Standards Act (FLSA). The recent US minimum wage is $7.25 per hour. However, some cities and states have set minimum wage rates that are greater than the federal minimum.
Review information on federal and state minimum wage rates, along with also a history of the minimum wage in the united states for information about historic minimum wage rates.
Federal Minimum Wage Rate
Effective July 24, 2009, the federal minimum wage is $7.25 an hour for covered non-exempt employees, meaning employees that are covered under the FLSA. Employers in covered employment classes cannot pay their employees less than $7.25 per hour.
State Minimum Wage Rates
Some nations pay a higher minimum wage than the national minimum. For instance, the minimum wage in Florida is $8.46 to get 2019, with some cities having a rate greater than the minimum. Here’s a list of present state minimum wage rates (2019) you can use to get information on the minimum wage on your location.
Local Minimum Wage Rates
Ultimately, some towns have set higher minimum wages than the state and national minimums. Typically, higher local minimum wages are found in regions with a high cost of living, such as San Francisco, which has a $15 per hour minimum wage as of 2018.
Cities may also sometimes set different minimums for different types of employee. For instance, as of Jan. 1, 2018, Seattle mandates a minimum wage of $15.45 for employees working for businesses with more than 500 workers internationally, if this company does not offer health benefits. However, similarly sized companies that do offer healthcare benefits can cover their employees $15 per hour.
When a worker is subject to local, state, and federal minimum wage laws, the worker is entitled to the higher of the three minimum salaries.
U.S. Minimum Wage History
The legislation established a minimum wage of 25 cents per hour for all employees who made merchandise shipped in interstate trade.
Increases in the Minimum Wage
Until 1956, the federal minimum wage was still below a buck, only rising to $1.15 from 1961. The minimum wage didn’t reach the present (2018) hourly fee of $7.25 until 2009. Since 1938, the federal minimum wage has been increased 22 times.
For the minimum wage to go up, both the federal government or state legislature should pass legislation that stipulates a change in the minimum wage. The last time that the national minimum wage was increased was in 2009.
When Employee Can be Paid Less Than Minimum Wage
There are a few employees that could be paid at rates under the hourly minimum wage. Those workers are permitted to be paid at a rate called a subminimum wage.
What Is Subminimum Wage?
What does subminimum wage imply? There are a number of workers who can be paid at hourly prices below the minimum wage according to the Fair Labor Standards Act (FLSA). Employees in certain types of employment can legally be paid less than the federal minimum wage which is now $7.25 an hour.
These subminimum wage workers comprise student-learners (vocational education students), and full-time students working in retail, service, agriculture, or even higher education.
Employees who fall under this category also include those whose physical or mental disability (because of age, trauma, etc.) that impairs their earning or productive ability.
Employment at less than the minimum wage helps to preserve the jobs for workers in these categories.
An employer of an employee who receives advice must pay $2.13 an hour in wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips, as well as the employee customarily and regularly, receives more than $30 a month in tips. When an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Exceptions to Minimum Wage – Young Workers
After 90 consecutive days of employment or the worker reaches 20 decades of age, whichever comes first, the employee should be given a minimum wage of $5.85 per hour.
If your employer is paying you less than the minimum wage, then visit the Compliance Section of the US Department of Labor Employment Standards Administration Wage and Hour Division for information on how best to proceed.
The information included in this article is not legal advice and is not a substitute for such information. State and federal laws change frequently, and the information in this article may not reflect your state’s laws or the most recent changes to the law.