Wage Regulations

Minimum wage laws have been established by the US Fair Labor Standards Act (FSLA) to protect youth and unskilled workers from unfair labor standard practices. Minimum wage laws apply to enterprises that engage in interstate commerce and do not less than $500,000 business annually. By law, overtime is not to be less than one and one half the regular rate for all hours worked over 40. The FLSA created an amendment in 1996 allowing employers to pay youth workers (under 20 years old) a minimum rate of $4.25 per hour. This rate is effective as of the first day the employee begins work and runs up to 90 calendar (not working) days, or until the worker's 20th birthday, whichever comes first. After that, the employee is paid the regular minimum wage. Under this amendment, regular employees cannot be replaced by youth workers by the employer's intention of paying them less

Fast Facts

  • The FLSA set the minimum wage to $6.55 per hour effective July 24, 2008, to be increased to $7.25 on this date in 2009
  • The US Wage & Hour Division (WHD) enforces standards for the FLSA regarding minimum wage, overtime pay, and child labor requirement laws.
  • The minimum youth worker's rate is stable and will not increase with the minimum wage.

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