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Minimum Wage
On July 24, 2008, the federal minimum wage was raised to $6.55, The rate will increase again on July 24, 2009, to $7.25. Related articles on Minimum Wage Overtime rules require you to pay one-and-a-half times the employee's hourly rate for all hours worked over 40 in any workweek, unless the employee performs work that's considered exempt from overtime (such as salaried executives). Accurate time records are required for all nonexempt employees, and child labor restrictions apply. ExceptionsThe federal Fair Labor Standards Act (FLSA) contains some exemptions from the minimum wage requirement. Some exceptions apply to specific types of businesses and others apply to specific types of work. It also provides for the employment of certain individuals at wage rates below the minimum wage. At least 30 states currently have minimum wage rates higher than the federal minimum wage. Many of the state laws provide that the state minimum wage rate applies only if it's higher than the federal minimum wage. Other state laws tie the state minimum wage to the federal minimum wage. As a result, the minimum wage in some states may be affected by the increase in the federal minimum wage. Employees who receive tipsUnder the federal law, employers that use the "tip credit" are permitted to pay tipped employees a cash wage of $2.13 per hour under the assumption that they will make enough in tips to earn the required minimum wage. The new federal law doesn't change the required cash payment; nevertheless, you should ensure that tipped employees earn enough in tips to bring their wages up to the new required federal minimum wage rates.
Related articles on Minimum Wage from the State Employment Law Letters
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