Overview of Minimum Wage Rights

The Fair Labor Standards Act (“FLSA”) requires that employers pay a certain minimum wage to all nonexempt employees. The current federally mandated minimum wage is at least $7.25 per hour for all non-exempt employees. Many states also have minimum wage laws. When an employee is subject to both state and federal minimum wage laws, the higher minimum wage applies.

If you are a non-exempt employee compensated on a commissions basis, or another similar method of compensation, then your employer may be required to provide you with at least minimum wage during the pay periods when your commissions equal less than the minimum wage.

If you are compensated based upon tips that you receive, the employer is required to pay $2.13 per hour if the amount in tips received equals at least the national minimum wage of $7.25 per hour. Your state, though, may have a law requiring higher payments for tipped employees. If the tips received and the wage of $2.13 per hour paid by the employer do not equal the federal minimum wage of $7.25 per hour, the employer must pay the employee additional money to ensure that they are receiving at least the federal minimum wage.

Employees who are younger than 20 years old must be paid a minimum wage of $4.25 per hour during their first ninety consecutive days of employment, so long as they are not displacing other employees. However, the employee must receive the federal minimum wage of $7.25 per hour when they turn 20 years old or after ninety consecutive days of employment.

Minimum wage increases must be passed by Congress and approved by the President. You can find your state’s minimum wage at the U.S. Department of Labor’s web site.

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