Minimum wage

On July 24, 2009, the federal minimum wage was increased to $7.25 per hour. Since 2007, the minimum wage has increased more than $2.00 per hour. Not quite three years ago the minimum wage was only $5.15 per hour. It seems surprising to some, but when adjusted for inflation, the new federal minimum wage is still less than the minimum wage through most of the period from 1961 to 1981. A total of 31 states were affected by the minimum wage increase which took place in July of this year, including Texas. Thirteen states and the District of Columbia had a minimum wage of at least $8.25 per hour at the time of the change. An estimated 4.5 million workers (less than 4% of the workforce) received an increase in their hourly wage rate when the increase took effect. An exception to the law is tip credit, which allows an employer to claim a credit of up to 50 percent the minimum wage for employees who earn tips. A training wage of 85 percent may be paid to certain employees under the age of twenty for a limited period of time.

Exempt/non-exempt

An exempt employee is one who is exempt from minimum wage and overtime requirements. Categories for these employees typically include professional, administrative, or managerial. These employees should be paid a salary significantly higher than the minimum wage. Conversely, employees who are non-exempt include any wage-compensated employees, including those which may be compensated at the minimum wage.

Overtime pay

In the United States, overtime pay is mandated at a minimum of one-and-one-half times regular pay for all hours worked beyond forty in a single week. This rule applies only to non-exempt employees.

Posters in the workplace

Most employers that employ just one person need to place certain posters in a highly visible area regularly accessible to their employees – at the entrance to the work area or break room, for instance. These posters include U.S. Department of Labor disseminated materials that display public information on the minimum wage, overtime pay, equal pay, child labor, age discrimination, equal opportunity, handicapped workers, employee polygraph protection, and family and medical leave laws.

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