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HR Support on Federal and State Minimum Wage Laws
Editor's Note: What's the least an employee may be paid?
Overview: Federal minimum wage law requires that all nonexempt employees be paid at least $7.25 for every hour they work; this is the federal minimum wage. Nineteen states have even higher minimum wages.
Since about 97 percent of the American workforce earns more than the minimum wage, very few employers need to concern themselves with this baseline requirement. Nevertheless, an employer that makes agreed-upon deductions from an employee's pay – for example, deductions for cleaning uniforms – must be careful that the deductions do not bring the employee's wage below the applicable minimum rate.
To comply with minimum wage laws, an employer can apply certain payments – most notably, tips that wait staff, bartenders and other tipped employees receive for service, and the cost of board and lodging – toward its minimum wage obligations.
Also, minimum wage laws allow certain employees – including students, workers with disabilities, messengers, apprentices and student-learners – to be paid at "subminimum wages" below the normal rate.
Trends: To help employees keep pace with the rising cost of living, ten states have indexed their minimum wage rates to the rate of inflation. Lawmakers have introduced legislation that would do the same in other states, and at the federal level. No bills have passed yet, but if the economy improves, it's a fair bet that some will start to be enacted.
Author: Michael Cardman, Legal Editor
Latest items in Minimum Wage
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Ruling Could Pave Way for Hospitality Industry to Distribute Tips to Cooks, Dishwashers and Other Non-Tipped Employees
In Or. Rest. & Lodging v. Solis, a federal court declined to defer to a US Department of Labor regulation requiring that employees retain all tips they receive, regardless of whether their employer claims those tips as a credit toward the minimum wage.
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California Vice: Targeted Inspections Yield Record-High Minimum Wage and Overtime Assessments
California's Division of Labor Standards Enforcement (DLSE) assessed $13 million in unpaid overtime and $3 million in unpaid minimum wages last year, a huge increase over previous years that the agency credits to its new approach to enforcement.
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May an employer claim the minimum wage tip credit for employees who don't spend all their time waiting tables or performing other tip-producing activities?
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May an employer claim a larger tip credit for overtime hours?
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What is the tip credit?
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May an employer count automatic gratuities for large parties as a tip credit against the minimum wage?
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Retail Resource Center for HR: Wage and Hour
XpertHR's Retail Resource Center for HR: Wage and Hour helps retail employers handle their most vexing employment issues by bringing relevant resources together in one place for easy access.
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Minimum Wage: New Mexico
In-depth review of the spectrum of New Mexico employment law requirements HR must follow with respect to minimum wage.
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Minimum Wage: Ohio
In-depth review of the spectrum of Ohio employment law requirements HR must follow with respect to minimum wage.
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Minimum Wage: Oregon
In-depth review of the spectrum of Oregon employment law requirements HR must follow with respect to minimum wage.
About this topic
HR and legal considerations for employers regarding FLSA minimum wage laws. Support on following rules and regulations regarding this topic.