The minimum wage law is set by the US labor law in the United States. Employers, in general, have to pay the highest minimum wage to its workers that is prescribed by the federal, state and local law. The minimum wage rate is set at 7.25$ per hour nationwide. There are 29 states that are giving higher wages to the employees than that of the federal law. Furthermore, 21 states increased their minimum wages level from 2017 t0 2018.
As the name specifies, minimum wage law states the lowest hourly wage rate an employer have to pay to the employees to perform the work. The minimum wage law is comprehensive in its nature and coverage, most provide exemptions and/or limitations to theirs. The applicability of this law depends upon many factors such as; the age of an employee, an employer's size, the type of industry, whether an employee receives tips, the type of the work that an employee performs etc.
The minimum wage laws are applicable regardless of whether an employer pays an employee by the rate of the hour, by piece, by salary, by commission etc. The law applies unless there is an exemption to the minimum wage law.
This law is by the Federal Government to set forth a national minimum wage rate. The law is called the Fair Labour Standards Acts (FLSA). The current rate of the federal wage is $7.25 per hour, for non-exempt and non-tipped employees.
Employees that receive a tip, the minimum wage rate by the Federal law is $ 2.13.There are several classifications of exempt employees given by the FLSA's minimum wage requirement. Click here to read further information about the federal minimum wage requirement.
The minimum rate for the wages is different for each state. There are many states who have either not passed any minimum wage law or have simply adopted the laws that are set by the federal government called FLSA.
But, each state has its own complex and complicated set of rules and regulation and that's why some states that have passed their own minimum wage rates law too. To see the list of minimum wage rates and links to state-specific minimum wage information, you can visit State Minimum Wage and Overtime Summaries.
There are some states where the state law differs from the federal law. Employers are confused and it becomes difficult to decide for them to apply which law for the wages of the employees. The answer in such a difficult situation is that an employer must apply the minimum wage law that results in its employees being paid the highest wage rate.
Thus, if the state law gives the employee higher rate than the federal rate and no exemptions apply, then the employer is required to pay its employees wage according to the state minimum wage rate and vice versa.