What is Sub-Minimum Wage? A Legal Overview and Implications

Definition & Meaning

Sub-minimum wage is a term used to describe a wage that is lower than the established minimum wage. This type of wage is permitted under specific conditions as outlined by the Fair Labor Standards Act (FLSA). The FLSA allows for sub-minimum wages to be paid to certain groups, including:

  • Student-learners who are gaining practical experience.
  • Full-time students working in retail, service industries, agriculture, or educational institutions.
  • Individuals with physical or mental disabilities whose ability to earn is affected.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A high school student working part-time at a local grocery store may be paid a sub-minimum wage as part of a student-learner program designed to provide work experience.

Example 2: A person with a disability may work at a community center and earn a sub-minimum wage due to their limited productive capacity (hypothetical example).

State-by-state differences

State Sub-Minimum Wage Regulations
California Strict regulations; must comply with state minimum wage laws.
Texas Allows sub-minimum wages under FLSA guidelines.
New York Higher minimum wage; limited sub-minimum wage allowances.

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

Comparison with related terms

Term Description
Minimum Wage The lowest wage that employers can legally pay their workers.
Living Wage A wage that is high enough to maintain a normal standard of living.
Fair Labor Standards Act The federal law that regulates minimum wage, overtime pay, and child labor.

What to do if this term applies to you

If you believe you qualify for sub-minimum wage or are an employer considering this option, it's essential to understand the legal requirements. You can explore US Legal Forms for templates that can help you navigate the necessary documentation. If your situation is complex, seeking professional legal advice is recommended.

Quick facts

  • Typical fees: Varies by state and employer.
  • Jurisdiction: Federal and state laws apply.
  • Possible penalties: Employers may face fines for non-compliance with FLSA regulations.

Key takeaways

Frequently asked questions

Eligibility includes student-learners, full-time students, and individuals with disabilities.