Minimum Wage
What is the minimum wage I can receive?
The current federal minimum wage is $5.15 per hour. However, many states have set their own minimum wage, which may be higher. An employee who is eligible for both the state and federal minimum wage must be paid the higher of the two.
TIP: The federal government provides extensive information on this issue on its Web site at www.dol.gov/dol/topic/wages/minimumwage.htm.
Does the minimum wage apply to teenagers?
The Fair Labor Standards Act (FLSA), the law that regulates wages, provides that if someone is less than 20 years old, the minimum wage is $4.25 per hour for the first 90 days of consecutive employment. The one proviso is that the person who is paid this rate cannot displace other workers. After the 90 days or when the person reaches age 20, whichever comes first, the employee must be brought up to the federal minimum of $5.15.
TIP: The above is the federal rule; your state may have a different practice. Check with your local Department of Labor.
Are the rules different if my compensation includes tips?
Most likely. Under the FLSA, a tipped employee may be paid $2.13 per hour if that amount plus tips exceeds the federal minimum wage. The employee must regularly receive at least $30 per month in tips and be entitled to keep all of it.
EXAMPLE: John has a part-time job shining shoes. He shines seven pairs of shoes an hour and normally gets tipped $1.00 a pair. He would be entitled under federal law to a minimum hourly wage of $2.13. If, however, he shined only two pairs an hour, his employer would be required to make up the difference of $1.02. It would be computed as follows:
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Again, it must be remembered that each state may have different rules regarding tipped employees.
If I am a full-time student who works in a store, in agriculture or for my college or university, am I entitled to the minimum wage?
The answer depends on how many hours that you work. Under the FLSA, if you work no more than 8 hours per day and 20 hours per week when school is in session (40 hours when it is out of session), you can be paid less than the minimum wage but in no case less than 85 percent of that minimum.
Are there other any other exceptions to the minimum wage rules?
An exception exists for disability if the disability impairs the worker's productive capacity for the work being performed. Just because an individual may have a disability does not mean she may be paid less. Employers who wish to take advantage of this exception must first receive a certificate from the Wage and Hour Division of the Department of Labor.