U.S. Minimum Wage: A Summary

U.S. Minimum Wage: A Summary

U.S. Minimum Wage: A Summary

In 1938, the Federal minimum wage was first introduced to the United States. The rate was recently increased from $6.55 to $7.25 an hour on July 24, 2009. On top of that, many individual states have legislated amounts that are higher than the national standard. This is thanks to the Fair Labor Standards Act, a document upheld by the U.S. Department of Labor.

Minimum Wage for Employees

Certain types of employees are guaranteed minimum wage coverage by the Fair Labor Standards Act. Most businesses that make $500,000 or more per year are legally required to pay their employees minimum wage. Some businesses that are required to pay minimum wage, regardless of yearly earnings:

Local, state, and government agencies

Institutions that care for the sick, disabled, or aged who live on premises

Most preschools, elementary schools, secondary schools, and institutions of higher learning

If you haven't been receiving the Federal minimum wage, you may be owed back wages. Read on to learn more about employment and minimum wage law, and see whether a minimum wage lawyer can help you get the pay you've earned.

State Minimum Wage

In cases where the state minimum wage and the Federal minimum wage differ, employees are always guaranteed the higher amount. For instance, AK, CA, CT, IL, MA, ME, MI, NM, NV, OH, OR, RI, VT, and WA all have a higher minimum wage than the Federal standard. Covered employees in these states are to be paid the state wages. States with a lower minimum wage than the U.S. standard are superseded by the higher governmental standard.

States may have other minimum wage laws that provide additional benefits to their workforce.

Minimum Wage-Exempt Workers

U.S. employment law does not require all businesses to adhere to these minimum wage standards. For instance, small businesses (less than $500,000 a year in income) may be exempt, according to the FLSA. Moreover, there are certain employee types that are not guaranteed minimum wage benefits. Here are some examples:

Certain small press employees

Casual babysitters

Tipped employees who make in excess of $30 a month in tips. Under the FLSA, they must be paid at least $2.13 an hour, but their company must be able to prove that both their tipped wages and the hourly wage are equivalent to minimum wage when combined and divided by the number of hours worked.

Employees under 20 are guaranteed only $4.25 an hour for their first 90 days of employment. However, this does change to the regular $7.25 rate once those days are completed. If, however, the employee turns 20 at any point during this period, they are guaranteed $7.25 immediately and permanently.

The Fair Labor Standards Act (available on the Department of Labor's website) details the full list of exemptions and exceptions.

Read more about minimum wage law, or contact an employment lawyer if you feel you haven't been adequately compensated. http://www.usovertimelawyers.com connects people who need employment law advice with people who can help.

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