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.
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.
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.
In-depth review of the spectrum of California employment law requirements HR must follow with respect to minimum wage.
As mandated by San Francisco's Office of Labor Standards Enforcement, all employers subject to the San Francisco Minimum Wage Ordinance must post the San Francisco Minimum Wage Poster.
The District of Columbia's Wage Theft Prevention Amendment Act of 2014 and its emergency amendments recently took effect. Several sections of XpertHR are affected and have been updated.
Nevada employers that offer qualifying health benefits must continue to pay nonexempt employees at least $7.25 per hour. All other Nevada employers must continue to pay nonexempt employees at least $8.25 per hour.
HR guidance on complying with federal and state minimum wage laws.