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
Four new entries have been added to the Legal Timetable, and the Employment Law Manual and a Quick Reference chart were updated to reflect the passage of a new minimum wage ordinance in Louisville, Kentucky.
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.
Content has been updated to reflect minimum wage changes in Arkansas, Arizona, Colorado, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington and West Virginia and in Albuquerque, New Mexico; Bernalillo County, New Mexico; Las Cruces, New Mexico; Richmond, California; and San Jose, California.
In-depth review of the spectrum of New York employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of New Jersey employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of New Mexico employment law requirements HR must follow with respect to minimum wage.
In-depth review of the spectrum of Ohio employment law requirements HR must follow with respect to minimum wage.
HR guidance on complying with federal and state minimum wage laws.