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The minimum wage is a fundamental labor law concept designed to ensure workers receive a fair and reasonable wage for their services. It establishes a legal floor that employers must meet to protect workers from exploitative wage practices. In the United States, both federal and state governments have the authority to set minimum wage standards.

Our New York City employment lawyers at The Samuel Law Firm will examine whether an employer can pay employees the federal minimum wage when the New York minimum wage is higher in this article.

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) says that employers can pay tipped employees a lower minimum wage as long as their tips and wages together 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 sub-minimum wage programs for workers with disabilities which, let employers pay them less than the usual minimum wage.