Los Angeles Employment Lawyer

Minimum Wage Laws

The federal minimum wage standard was first outlined in the Fair Labor Standards Act of 1938 (FLSA). This important body of law also set down rules for overtime pay and put strict regulations on child labor. In 1938, when the FLSA was first established, the federal minimum wage was only 40 cents – a pittance by modern standards. A long series of revisions and amendments to the FLSA over the years has not changed its importance to employment and labor law.

In 2007, Congress and President George W. Bush enacted an appropriations bill which contained a significant amendment to the minimum wage provisions of the FLSA. This amendment, called the Fair Minimum Wage Act of 2007, would increase the minimum wage to $7.25 by 2009.

Currently, the national minimum wage standard is set at $5.25. In most cases, this means that an employer must pay their employees at least $5.25 an hour. One exception to this rule is tipped jobs. If an employee can be expected to receive tips in their line of work, the employer may reduce their fixed wage, as long as the total earnings of the employee still averages $5.25 an hour or higher. Furthermore, the so-called tip credit is limited by law.

Although there is a national minimum wage set by the federal government, individual states have the option of enacting their own minimum wage laws which set a minimum wage higher than the national standard.

For more information about employment law, contact Los Angeles employment lawyer Perry Smith at 888-356-2529.