Beginning July 24, 2007, the Federal minimum wage increased to $5.85 per hour. Overtime Pay: At least 1 ½ times the employee’s regular rate of pay for all hours worked over 40 in a workweek.
Tipped employees: Employers of “tipped employees” must pay a cash wage of at least $2.13 per hour if they claim a tip credit against their minimum wage obligation. If an employee’s tips combined with the employer’s cash wage of at least $2.13 per hour do not equal the minimum hourly wage, the employer must make up the difference. Certain other conditions must also be met.
Additional information:
- Certain occupations and establishments are exempt from the minimum wage and/or overtime pay provisions.
- Some state laws provide greater employee protections;employers must comply with both.
- Employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer.
- Certain full-time students, student learners, apprentices, and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Department of Labor.
Fair Labor Standards Act (FLSA) Minimum Wage Poster: The law requires employers to display a notice where employees can readily see it explaining the Act. A poster for this purpose is available at http://www.dol.gov/esa/regs/compliance/posters/pdf/minwage.pdf.