Minimum Wage Law: Key Insights into Employee Rights and Regulations

Definition & Meaning

The minimum wage law establishes the lowest hourly wage that employers can legally pay their employees. This law is primarily governed by the Fair Labor Standards Act (FLSA), which sets a federal minimum wage. As of July 24, 2009, the federal minimum wage is $7.25 per hour for covered, nonexempt employees. States may also have their own minimum wage laws, and if a state law sets a higher wage than the federal standard, employers must adhere to the state law.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A restaurant employs a server who earns a base wage of $2.13 per hour plus tips. In a state with a minimum wage of $10 per hour, the employer must ensure that the server's total earnings (base wage plus tips) meet or exceed the state minimum wage.

Example 2: A student working part-time during the summer is paid $7.25 per hour, which complies with the federal minimum wage law. However, if they work in a state with a higher minimum wage, the employer must adjust their pay accordingly. (hypothetical example)

State-by-state differences

State Minimum Wage
California $15.50 per hour
New York $14.20 per hour
Texas $7.25 per hour

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
Minimum Wage The lowest hourly wage that an employer can legally pay employees.
Living Wage A wage that is sufficient to maintain a normal standard of living, often higher than the minimum wage.
Prevailing Wage The average wage paid to workers in a specific area for a particular type of work, often used in government contracts.

What to do if this term applies to you

If you believe your employer is not paying you the minimum wage, you should first discuss the matter with them. If the issue persists, consider filing a complaint with the Department of Labor or your state labor office. You can also explore US Legal Forms for templates that can assist you in filing wage claims or other employment-related documents. If your situation is complex, seeking legal advice may be beneficial.

Quick facts

  • Federal minimum wage: $7.25 per hour
  • Enforced by: Department of Labor
  • Common exceptions: Tipped employees, students, and workers with disabilities
  • State variations: Significant differences exist among states

Key takeaways

Frequently asked questions

The current federal minimum wage is $7.25 per hour, as established by the Fair Labor Standards Act.