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What is the Wage Floor? A Comprehensive Guide to Minimum Wage Laws
Definition & Meaning
The wage floor refers to the minimum wage that employers are legally required to pay their employees. It establishes a baseline below which wages cannot fall, ensuring that workers receive a fair minimum compensation for their labor. This minimum wage can be set by federal law, such as the Fair Labor Standards Act (FLSA), or by state legislation, which may set higher minimums than the federal level. The wage floor is crucial for protecting employees from exploitation and ensuring a basic standard of living.
Table of content
Legal Use & context
The wage floor is primarily used in employment law, which governs the relationship between employers and employees. It is relevant in various legal contexts, including labor rights, wage disputes, and employment contracts. Understanding the wage floor is essential for both employees seeking fair compensation and employers ensuring compliance with labor laws. Users can manage related issues through legal forms provided by platforms like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A restaurant in California must pay its employees at least $15 per hour, as this is the state's minimum wage, which exceeds the federal wage floor of $7.25 per hour.
Example 2: An employee working in a retail store in Texas is entitled to a minimum wage of $7.25 per hour, which aligns with the federal wage floor. (hypothetical example)
Relevant laws & statutes
The primary law governing the wage floor in the United States is the Fair Labor Standards Act (FLSA). This act sets the federal minimum wage and regulates overtime pay and youth employment. Additionally, many states have their own minimum wage laws that may provide higher wages than the federal standard.
State-by-state differences
State
Minimum Wage
California
$15.00
Texas
$7.25
New York
$15.00
Florida
$11.00
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 wage that an employer can legally pay an employee, synonymous with wage floor.
Living Wage
A wage that is high enough to maintain a normal standard of living, which may exceed the minimum wage.
Fair Labor Standards Act (FLSA)
A federal law that establishes minimum wage, overtime pay, and youth employment regulations.
Common misunderstandings
What to do if this term applies to you
If you believe your wages are below the legal wage floor, you should first check your state's minimum wage laws. Document your hours worked and pay received, and consider discussing the issue with your employer. If the matter remains unresolved, you may need to file a complaint with the Department of Labor or seek legal assistance. Users can also explore US Legal Forms for templates that may help in addressing wage disputes.
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