The Federal Minimum Wage Act
The Federal Minimum Wage Act is a guide that informs employers and employees of all of the rights that they have. It was first established in 1938, according to Time magazine, and used to be called the Fair Labor Standards Act. When the law was established, it had a 25-cent per hour wage and banned child labor.
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Minimum Wage
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The U.S. Department of Labor Wage and Hour Division implemented a minimum wage hike on July 24, 2009. The federal minimum wage is now $7.25 per hour. This hike is 70 cents more than it was in January 2009.
Child Labor Laws
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Child labor laws state that an employee must have reached a minimum of 16 years old before she can be allowed to work. If an employee is working on a hazardous job, he must be at the minimum age of 18. Youth ages 14 and 15 years old may be employed after school but for only three hours per day. On non-school days, a youth employee may work eight hours a day. Also children between the age ranges of 14 and 15 years old may not start a job before 7 a.m. and may not complete work after 7 p.m.
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Tip Credit
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Employees who earn tips must be payed $2.13 per hour by the employer on top of their earned tips. If the tips that the employee earns plus the $2.13 that the employer must pay does not equal the current minimum wage, then the employer must pay the employee the difference.
Wage Enforcement
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The Department of Labor can and will take legal action against any employer who has underpaid one of their employees. Any employer that violates the Federal Minimum Wage Act may be subject to civil or criminal charges.
Civil Penalties
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Civil penalties for underpaying employees can be a minimum of $1,100. Fines can reach all the way up to a maximum of $11,000. In addition to these fines, a $50,000 civil penalty will be issued to each employer in violation of a child labor law which results in the death of a youth employee. The $50,000 penalty may also be doubled to total $100,000.
Exemptions
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There are certain jobs and establishments that can be exempt from the federal minimum wage and overtime qualifications. For more in-depth information, refer to the U.S. Wage and Hour Division website.
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There are some state laws that provide better protection for employees. Employers must adhere to all state and federal laws in effect. There are also rules that state an employee may be paid less than the federal minimum wage under special certificates issued by the Department of Labor but only if those select employees meet specific criteria.
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