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. Twenty-six states have (or will soon 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, 14 states adjust (or will adjust) their minimum wage rates based on the rate of inflation. Lawmakers have introduced legislation that would do the same in other states, and at the federal level.
Author: Michael Cardman, Legal Editor
In-depth review of the spectrum of New Hampshire employment law requirements HR must follow with respect to minimum wage.
New Hampshire's governor signed a bill that will repeal the state's subminimum wage for workers with disabilities, effective July 6, 2015.
The Los Angeles City Council on May 19 voted 14-1 to adopt a motion directing the city attorney to draft an ordinance that would annually increase the city's minimum wage over the next five years, reaching $15.00 per hour by 2020.
In-depth review of the spectrum of California employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of South Dakota employment law requirements HR must follow with respect to minimum wage.
South Dakota's minimum wage for minors under the age 18 is now $7.50, one dollar lower than the $8.50 minimum wage for adult employees.
This section helps HR professionals manage challenges that come with operating in multiple states, notably complying with differing state and key municipal laws, and addresses the pros and cons of having a centralized or decentralized HR department. Trends currently affecting multistate employers are identified, such as same-sex marriage laws and tracking various state leave laws, are discussed.
In-depth review of the spectrum of New Mexico employment law requirements HR must follow with respect to minimum wage.
New York is establishing a uniform minimum cash wage for all tipped employees of $7.50, effective December 31, 2015.
HR and legal considerations for employers regarding FLSA minimum wage laws. Support on following rules and regulations regarding this topic.