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
Many new employment laws took effect on July 1, 2015. The laws range from Mississippi's new texting while driving law to the new OSHA HazCom requirements affecting manufacturer labels.
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 California employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of District of Columbia employment law requirements HR must follow with respect to the minimum wage.
In-depth review of the spectrum of Illinois employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of Kentucky employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of Maryland employment law requirements HR must follow with respect to minimum wage.
Many states and municipalities have minimum wage requirements. This Quick Reference chart sets forth the state minimum wage rates for all 50 states plus the District of Columbia. It also covers selected local minimum wage ordinances that apply to most or all employees who work within a particular jurisdiction.
If Rhode Island's governor signs a new bill as expected, the minimum cash wage for tipped workers would increase from $2.89 to $3.39 on January 1, 2016, and to $3.89 on January 1, 2017.
Rhode Island's minimum wage will increase to $9.60 on January 1, 2016, under a bill signed into law by the governor on June 17, 2015.
HR guidance on complying with federal and state minimum wage laws.