Explaining the minimum wage
The Fair Labor Standards Act lays out federal minimum wage provisions for covered, nonexempt employees. Minimum wage is the lowest amount a worker can legally be paid per hour of employee attendance, and currently stands at $7.25.
Many states have their own minimum wage laws. Where federal and state laws have different minimum wage rates, the employee is entitled to the higher figure.
Louisiana, Alabama, Mississippi, Tennessee and South Carolina do not have minimum wage laws in place and therefore abide by the federal legislation. Puerto Rico, Georgia, Arkansas, Minnesota and Wyoming have minimum wage rates lower than the federal law and the remaining states have rates that are either the same or higher than the federal.
The law is different for workers who receive tips, such as waitstaff. According to the Department of Labor website, employers of tipped workers must only pay $2.13 in direct wages, provided "the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips." If tips and direct wages combined do not meet the federal minimum wage rate, the employer must make up the difference.
Many states have their own minimum wage laws. Where federal and state laws have different minimum wage rates, the employee is entitled to the higher figure.
Louisiana, Alabama, Mississippi, Tennessee and South Carolina do not have minimum wage laws in place and therefore abide by the federal legislation. Puerto Rico, Georgia, Arkansas, Minnesota and Wyoming have minimum wage rates lower than the federal law and the remaining states have rates that are either the same or higher than the federal.
The law is different for workers who receive tips, such as waitstaff. According to the Department of Labor website, employers of tipped workers must only pay $2.13 in direct wages, provided "the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips." If tips and direct wages combined do not meet the federal minimum wage rate, the employer must make up the difference.
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