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Minimum wage is the lowest hourly rate at which workers can legally be paid. As of July 24, 2008, a federal law known as the Fair Labor Standards Act (FLSA) has set the national minimum wage at $6.55 per hour. While an individual state's law may set a higher minimum wage the higher of which is considered valid, hourly wages must be no less than the statewide recognized minimum wage, unless certain, well-defined circumstances apply.
In all cases in which an employee's hourly wage will be less than the minimum wage, employers are legally responsible for informing the employee of this fact, as well as the reasons behind it.
Employers who don't inform their employees of lower wage rates, who illegally pay less than minimum wage or who otherwise violate minimum wage laws can be sued and made to pay affected employees monetary compensation.
To reflect changing times, amendments to the Fair Labor Standards Act have effectively raised minimum wage since the law's inception in 1938. While the FLSA first established minimum wage at $0.40 per hour in 1938, today federal minimum wage is $6.55 per hour. On July 24, 2009, the minimum wage will be increased again, bumping it to $7.25 per hour.
The most obvious instances in which minimum wage violations occur are when employers simply pay employees less than the required $6.55 per hour (or the higher state-set minimum wage). However, employers may also be guilty of minimum wage violations, thereby violating the Fair Labor Standards Act, if they:
deduct workers' pay for uniforms, breakages or register shortages, causing the worker's average hourly pay rate to be less than minimum wage
force employees to pay out some of their tips to the business (or the employers themselves)
force employees to work for tips or commission only
Any one or combination of the above is an illegal minimum wage violation, as each directly defies the terms outlined in the Fair Labor Standards Act.
The Fair Labor Standards Act is a federal statute that sets specific, legally binding limits, guidelines and/or prohibitions regarding:
commissions and tip earnings
employment of minors
minimum wage
overtime pay rates
recordkeeping, particularly when it comes to documenting employees' pay and hours
In essence, the FLSA is intended to protect workers and to make sure that they are fairly paid for the work that they do. Consequently, if you feel that your employer is not fairly compensating you or is unfairly docking your pay, take some time to review the FLSA more thoroughly and, possibly, talk to an experienced lawyer about your situation.
In specific circumstances, employers may be legally empowered to pay some employees less than minimum wage rates. One such example is the lower pay rate allowance for tip earners, who the FLSA defines as those who earn at least $30 per month in tips.
According to this minimum wage exemption, employers are entitled to pay these tipped employees as little as $2.13 per hour, as long as the tips earned when added to the hourly wage average to at least $6.55 per hour (the national minimum wage standard).
Keep in mind, however, that employers will be responsible for paying the wage difference if employees' tips don't average out to the standard minimum wage. So, for example, if an employee doesn't earn any tips in a given pay period, the employer will be responsible for paying the worker the full $6.55 per hour, rather than the lower rate of $2.13 per hour that is only acceptable when adequate tips are earned.
It's also important to note that employers are obligated to inform all of their employees about the terms of this minimum wage exemption. Any violation of minimum wage laws, as well as related exemptions, is grounds for a lawsuit.
If your employer is guilty of a minimum wage violation, exercise your legal rights by contacting an experienced labor lawyer today. Fair compensation is your legal right, and a lawyer can help ensure that youre paid what youre owed.
California Labor Commissioner, Angela Bradstreet filed a lawsuit with the Superior Court of California, County of San Diego, Dec. 23, against Einstein Industries Inc. According to the lawsuit, the San Diego-based online healthcare and ...
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