What is the Federal Minimum Wage?The federal minimum wage is $7.25 an hour.
Certain states and cities have adopted minimum wages higher than the federal minimum wage. In such an instance, the employee is entitled to the highest minimum wage applicable.
What are common violations of the minimum wage law?
Common violations include not paying an employee for all hours worked, paying by commission in weeks where there is little or no commission to be paid, and outright worker exploitation.
Not paid for all hours worked: If an employee must drive long distances but is not paid, is made to wait at a specific location and cannot leave, or is taken off the clock between jobs in a shift, the employer may be violating the minimum wage law. This also occurs if an employee performs work and the employer simply fails to pay the employee.
Insufficient commission: If an employee is paid by the commission, and the commission is less than minimum wages for a workweek, the employer may have violated the law.
Exploitation: Unfortunately, some employers will simply exploit workers and pay them less than the minimum wage. We are particularly interested in cases where employers prey on the uneducated, minority workers, and non-citizens (including undocumented workers or “illegal immigrants”).
What is the Minimum Wage for Workers Who Receive Tips?
Although most tipped employees are paid $2.13 an hour, the minimum wage for tipped employees is $7.25. The difference between $7.35 and $2.13 is known as the "tip credit." Employer can only take the tip credit and pay tipped employees $2.13 an hour if the employer follows all the guidelines. If the employe does not follow each and every guideline, the employer cannot use take advantage of the tip credit and must pay tipped employees $7.25 an hour. For example, if your employe takes your tips or does not pay you the correct overtime rate, your employe has not followed the proper guidelines and most pay you $7.25 per hour for every hour worked.