Minimum Wage Tracker Economic Policy Institute

45 of the United States have their own state-wide minimum wage legislation. These are set by the governing bodies of each state, and they deal with setting the rates and decreeing the laws around minimum wage in their boundary. Whichever is the higher of the state minimum wage and the federal minimum wage is the one that employers must pay their hourly staff. Employees who meet federal minimum wage eligibility requirements and are covered by both state and federal minimum wage laws are entitled to the higher of the two.

Overview of Georgia’s Minimum Wage Requirements

The certificate also limits the hours that you may work to 8 hours in a day and no more than 20 hours a week when school is in session and 40 hours when school is out. Once students graduate or leave school for good, they must be paid $7.25 per hour. Yes (if you would otherwise be covered by the Fair Labor Standards Actt or equivalent state laws discussed above), which means that your average hourly earnings for the week must equal $7.25 or higher. This can be determined by dividing your salary by the number of hours that you work. An employer cannot create a salary rate that is so low that when you divide your weekly pay by the number of hours worked the resulting hourly pay is less than the minimum wage.

• In the model just presented, the minimum wage always increases unemployment.
• To file a complaint, you must obtain and provide WHD requested information.
• Employers managing multi-state operations or complex payrolls often benefit from automation, which reduces errors and streamlines compliance tasks.
• Jobs that a minimum wage is most likely to directly affect are those that pay close to the minimum.

An International Society for the Advancement of Economic

Nonexempt workers can’t be offered a job or agree to work for less than this amount. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The federal minimum wage is $7.25 per hour effective July 24, 2009. Some state laws provide greater employee protections; employers must comply with both. After 90 consecutive days of employment or when the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 per hour. Employers whose enterprises are covered by the FLSA, or who have employees engaged in interstate commerce are required by the FLSA to pay the minimum wage.

Living wage vs. minimum wage

According to the law, an employee with a disability must be paid the state minimum wage or the applicable local https://www.bookstime.com/ minimum wage ordinance, whichever is higher. If state, city, and federal minimum wage laws apply, then the employee is entitled to whichever minimum wage is higher. For more information on minimum wage laws, visit the Department of Labor website.

… the direct results of minimum wage legislation are clearly mixed. Some workers, most likely ledger account those whose previous wages were closest to the minimum, will enjoy higher wages. Others, particularly those with the lowest prelegislation wage rates, will be unable to find work.

Minimum wage in America: How many people are earning $7.25 an hour?

Employers must communicate clear policies on breaks to avoid confusion and ensure legal compliance. The B-READY project offers a new approach to evaluating the business environment by balancing employer challenges with worker well-being. The minimum wage indicators are grounded in internationally recognized standards and practices, emphasizing fair and sustainable minimum wage systems. If an employee is in a state where a higher state minimum than $7.25 then they are entitled to the state minimum wage. If there is no state minimum wage or a wage that is lower than $7.25 then the employees in that state are entitled to $7.25 per hour. To be eligible for minimum wage, an employee must be both covered and nonexempt.

State Minimum Wage Laws

Therefore, the minimum wage, although better than nothing, is much less effective compared to the living wage – and often traps people in a cycle of poverty. They may not sufficiently account for the cost of living in a country and are sometimes not adjusted for decades. They could be based on figures like the median or average income to calculate benchmarks which then determine the lowest amount an employer can legally pay a worker.

Tipped Workers

Effective July 24, 2009, the federal minimum wage is $7.25 an hour for covered non-exempt employees, meaning employees who are covered under the FLSA. Employers in covered employment categories cannot pay their employees less than $7.25 per hour. The most common argument in support of the minimum wage is that it protects the workers at the lowest rung of the socio-economic ladder. These workers, many of whom represent marginalized groups (women, minorities, youth workers, the disabled, and so on), simply don’t have the bargaining power to fight for a minimum living wage without government intervention. Waiters and other “tipped” professions fall into a special category if they receive at least $30 a month in tips.

• Although the federal minimum wage rate is subject to change, it has not increased since 2009.
• See the Department of Labor website for information on state minimum wage laws.
• Critics also note that minimum wage laws may lead to job outsourcing—that is, companies may decide to move their facilities to countries where labor costs are lower.
• When choosing between federal, state, and local minimum wage laws, always pay your employees the highest rate.
• Comply with labor laws by learning what minimum wage your business may be subject to.

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