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Minimum Wage

Minimum Wage is the least amount a person can earn for performing work for some employers, according to federal and state guidelines. Many states vary their minimum wages compared to the federal standards set. It is not known for sure why this is but it may be due to the different cost of living expenses being so different in the states. What is the minimum wage now? It depends on where you live. There is a minimum of $4.25 which applies to young workers under the age of 20 during their first 90 days of employment with an employer. After their 90 day probation period is up or they reach the age of 20, whichever comes first, the employee will receive minimum wage, which is $585 per hour. This amount became effective on July 24, 2007. Effective July 24, 2008, the minimum wage will go up to $6.55, and on July 24, 2009, the minimum wage will go up to $7.25. This is according to the Federal minimum wage bill which was passed by Bush on May 25, 2007. Overtime pay is required if the employee works over a 40 hour week and the amount should be one and one half times the wage the employee is getting for each regular hour.

When a state has its own minimum wage law, the employer has to pay the minimum wage which is larger of the two between the federal and state. In most cases the state minimum wage is more than the federal minimum wage. Many states just use the federal minimum wage law requirements for their residents. This ruling is taken from the Fair Labor Standards Act (FLSA). The overtime rule also falls under this act to protect the employee.

The minimum wage for employees who receive tips is $2.13 per hour. That is if this amount, plus the tips equals to at least the federal minimum wage. It also means that the employee is entitled to all their tips received and it has to be at least $30 per month. If the total of the tips and the wages does not meet the federal minimum wage of $5.85, the employer has to make up the difference.

There are a few programs which allow the employer to pay less than minimum wages. If the employee is disabled or a student (both full time and student learner), the employer does not have to pay minimum wages to them but they do have to pay no less than 85% of the minimum wage. Somehow this does not seem fair if the student or disabled person is doing the same work as their co-workers. If they are doing the same work, at the same speed or better, they should be compensated for it.

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