QandAs: Legal

What is the Current Minimum Wage?

Answer:
As of July 24, 2009, the federal

minimum wage rate for non-exempt employees was increased to $7.25 per hour. The Fair Labor Standards Act (FLSA) contains the federal minimum wage requirements. In addition to federal minimum wage rates, some states impose minimum wage requirements. An employee is entitled to the highest minimum wage requirement when subject to both state and federal laws.

Workers with disabilities may be paid sub-minimum wages if their employer has applied for a sub-minimum wage certificate. Workers under age 20 may receive a reduced minimum wage until they have been employed 90 consecutive days. After that time, or when they reach age 20, the worker must be paid at least the federal minimum wage. Employers that hire full-time students may obtain a certificate from the Department of Labor which will allow the student to receive at least 85% of the minimum wage. Workers who are in occupations where “tips” are earned, such as waiters and waitresses, usually receive sub-minimum wages.

The federal minimum wage does not automatically increase. A bill must be passed by Congress which the President must sign into law in order for the federal minimum wage to increase. The Wage and Hour Division of the U.S. Department of Labor is responsible for enforcing the minimum wage.