Understanding Minimum Wage
The minimum wage refers to the lowest hourly rate an employer can legally pay employees. It serves as a means to guarantee a basic standard of living and protect workers from being paid unreasonably low wages. The concept of minimum wage recognizes the dignity and value of work and ensures workers receive fair compensation for their efforts.
Federal Minimum Wage
The federal minimum wage is the lowest wage rate established by the U.S. federal government that employers must adhere to. The federal minimum wage stands at $7.25 per hour. This rate was set in 2009 and has not been increased since then. However, it is important to note that the federal minimum wage can change in the future due to legislative updates.
New York Minimum Wage
The state of New York has its own minimum wage laws, which may differ from the federal standards. As of September 2021, the minimum wage in New York varied based on several factors, such as the geographic location of the employer and the size of the business. For example, in New York City, the minimum wage for large employers (11 or more employees) was $15.00 per hour.
Exceptions to Minimum Wage Requirements
Both federal and state minimum wage laws may have exceptions or exemptions for certain categories of workers. These exceptions typically cover specific occupations, industries, or employee classifications. Some examples of exceptions to minimum wage requirements include:
1. Tipped Employees: The Fair Labor Standards Act (FLSA) allows employers to pay a lower minimum wage to employees who regularly receive tips as long as their combined tips and wages meet or exceed the minimum wage.
2. Youth Workers: There are provisions under federal and state laws that permit employers to pay a lower minimum wage to employees below a certain age (such as youth workers, trainees, or apprentices) for a limited period.
3. Disabled Workers: Some jurisdictions provide wage certificates or subminimum wage programs for workers with disabilities, allowing employers to pay them wages below the standard minimum wage.