The federal minimum wage is $7.25 per hour for workers covered by the FLSA. In the state of Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, same minimum wage are applied for both tipped and non-tipped employees. Tips collected by employees in these states will not offset employer’s obligation to pay the wage, and tips are additional income beyond the wage paid by employer. In addition, some counties and cities within states may implement a higher minimum wage than the rest of their state. Sometimes this higher wage applies only to businesses that contract with the local government, while in other cases the higher minimum applies to all work.
Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour. The premium overtime pay requirement on either a daily minimum wages or weekly basis is not applicable to employers of fewer than 4 employees. Chipotle’s CFO told Yahoo Finance that the company will be forced to increase their prices to comply with the minimum wage increase.
Arguments for a $15 Minimum Wage
The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. Premium pay not applicable to employees who request compensating time off in lieu of premium pay. Employers with ten or more full time employees at any one location or employers with annual gross sales over $100,000 irrespective of number of full time employees. An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law.
The company also opened a total of 271 new restaurants, according to a company statement. The previous minimum wage in California, regardless of industry, was $16 an hour — meaning many cashiers, line and prep cooks, counter attendants and baristas will see as much as a 25% raise overnight. Using both enforcement and public education efforts, the Wage and Hour Division strives to ensure that workers are paid the minimum wage. The Jack in the Box worker Jauregui, 52, has been cobbling together two salaries, working about 54 hours a week between the restaurant and a laundromat. California is one of the country’s most expensive states; about half a million people are estimated to work in fast food here, mostly women, immigrants and people of color.
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A small change in the price for low-wage labor could have a large effect on employer demand, they say, leading to increasing unemployment among low-wage workers. Critics note that minimum wage laws may also lead to job outsourcing in which companies may decide to move their facilities to countries where labor costs are lower. Workers under the age of 20 may be paid $4.25 per hour by federal law until they pass a three-month probationary period. The employer must convert their pay structure to the federal minimum wage rate after that. The government periodically assesses the federal minimum wage level with changes in inflation or the cost of living and the rate has not increased since July 2009.
- If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
- The 2024 Minimum Wage in the state of Washington is $16.28 per hour.
- But the Newsom administration said the wage increase law does apply to Panera Bread because the restaurant does not make dough on-site.
- An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law.
- Check out this article for 10 ways to increase employee productivity.
- The institute issued a report last week concluding that higher wages do not have to translate to higher prices and fewer jobs.