The Department of Wages and Hours of Labour of the Ministry of Labour administers and enforces the Federal Minimum Wage Act. Building a just economy requires deliberate policy changes at the state and federal levels, including raising the minimum wage and eliminating the minimum wage. Equal Pay Act 1963 (Public Law 88-38) The equal pay provisions prohibit pay differentials between men and women employed in the same establishment and performing work that requires the same effort, skill and responsibility. These provisions are enforced by the Equal Employment Opportunity Commission (EEOC). In New York, the minimum wage increase will take effect on December 31, 2021. The state with the highest minimum wage is California ($15.00). However, this only applies to businesses with 26 or more employees. The state with the highest minimum wage, which applies to all businesses, is Washington ($14.49). The table below reflects the government`s current minimum wages that were in effect in January. 1, 2020, as well as future increases. 16 Oregon: In addition to the new standard minimum wage rate, SB 1532 sets a higher rate for employers within the urban growth limit and a lower rate for employers in non-urban counties.

Their respective planned increases are below. Women make up the majority (63.5%) of those earning wages at or below the federal minimum wage. (see Figure 2) They are also much more likely to receive tips, often earning even below minimum wage. For nearly 30 years, Paycor has guided clients through major changes in federal, state and local taxes and compliance. Visit our Resource Centre for the latest updates on compliance, industry trends, thought leaders and best practices to help organizations realize their vision and potential. If Washington, D.C. were a state, it would have the highest minimum wage ($15.20). Many states also have minimum wage laws.

In cases where an employee is subject to both federal and state minimum wage laws, the employee is entitled to the higher of the two minimum wages. Lol The federal minimum wage has been $7.25 since 2009. Federal minimum wage provisions are included in the Fair Labour Standards Act (FLSA). The FLSA does not provide for procedures for the payment or collection of wages for an employee`s usual or promised wages or commissions beyond those required by the FLSA. However, some states have laws under which such claims (sometimes including benefits) can be filed. In states without minimum wage laws (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) or minimum wage below the federal minimum wage (Georgia and Wyoming), the federal minimum wage of $7.25 applies. These differences are no coincidence: they are deeply rooted in the history of slavery, sexism, and racism in the United States. In 1938, the Fair Labor Standards Act was passed by the New Deal Congress, which imposed minimum wage and overtime pay. With these federal labor laws, Southern congressmen feared that a minimum wage would not be used to make the white supremacist plantation system on which they relied heavily. What eventually led to the passage of a federal minimum wage law was a racist “compromise” with Southern Democrats that excluded minimum wage requirements in agriculture and services, which had a painfully high concentration of black workers, particularly in the South. As a result, people of color are still overrepresented in minimum wage jobs today. Sources: United States Department of Labor, www.dol.gov/esa/minwage/america.htm; and government websites.

For employers with employees in multiple states, keeping track of the various changes to the minimum wage rate can be a daunting task. While some states have a schedule of annual increases to eventually reach $15 an hour, more than 20 states follow the federal minimum. And while the $7.25 federal minimum wage hasn`t budged since 2009, nearly half the country will raise the minimum wage for hourly workers after Jan. 1, 2022. The federal minimum wage for covered and non-exempt employees is $7.25 per hour. Federal minimum wage provisions are included in the Fair Labour Standards Act (FLSA). The federal minimum wage has been $7.25 per hour since July 24, 2009. Many states also have minimum wage laws. Some state laws provide better protection for workers; Employers must comply with both. About the Youth Minimum Wage Program A minimum wage of at least $4.25 may be paid to workers under the age of 20 for the first 90 consecutive calendar days of employment, as long as their employment does not crowd out other workers. The two states with the lowest minimum wage are Georgia ($5.15) and Wyoming ($5.15). However, employers in Georgia and Wyoming subject to the Fair Labor Standards Act must continue to pay the $7.25 minimum wage.

Occupational segregation – as well as discrimination based on gender and race – have shaped many characteristics of today`s low-wage labour market. Women and people of color, including Hispanic workers, are often employed in the service sector — as restaurateurs, dishwashers, fast food cooks, daycare workers, home care assistants and cashiers — who account for nearly 74 percent of jobs paid at or below federal minimum wage. The historical division of the workforce – with some occupations considered “women`s work” – has undervalued the work of women, especially women of color. The overrepresentation of women, and particularly women of color, among those earning at or below the federal minimum wage has contributed to persistent wage gaps across gender, ethnicity and race. In 2021, among all workers, women received only 73 cents for every dollar earned by a man, while women of color had even larger pay gaps. The continued concentration of women in minimum wage jobs illustrates the persistent barriers to accessing good, quality jobs in the labour market. Questions and answers on minimum wage Answers to questions ranging from “How often does the minimum wage increase?” to “Who ensures that employees receive at least the minimum wage?” Our expertise goes far beyond minimum wage. From recruitment and onboarding to people management, compliance and more, we provide the technology and expertise to help businesses solve their problems and grow. How can we help your business? Take a guided tour of our most popular solutions to find out. Currently, there are 20 states that do not have a minimum wage higher than the minimum wage prescribed by the federal government.

(see Figure 1) States that have raised their minimum wages above federal levels have helped millions of low-wage workers receive higher wages to better support themselves and their families. However, these increases are not widespread because most Southern states have not raised wages above the federal minimum of $7.25. In 2021, more than half (53%) of all workers earning at or below the federal minimum wage lived in the South, a predominantly African-American region, resulting in large racial inequality. In addition, eight states, including California, Nevada, Oregon, Washington, Minnesota, Montana, Alaska and Hawaii, have eliminated the minimum wage. Meanwhile, 16 states, disproportionately in the South, use the federal minimum wage of $2.13 per hour, contributing to wage inequality between states. The widespread belief that minimum wage workers are teenagers who work after school or during summer vacation is not correct: most minimum wage workers are prime-age adults between the ages of 25 and 54, many of whom support families and children. This has important implications for women, as women constitute the majority of employees at the state minimum wage and also have dual responsibilities in their households. White women are the majority of mothers who feed, and women of color are disproportionately more likely to be the breadwinners. This means that their families often rely on these low incomes to make ends meet. As a rule, minimum wage earners are not young people at the beginning of their careers, but mostly women who also take on several tasks in their households. 3 Connecticut: Connecticut`s minimum wage rate automatically increases to 1/2 of 1% above the rate set out in the Fair Labor Standards Act if the federal minimum wage rate equals or increases the state minimum. In most of these states, the minimum wage will increase on January 1, 2022.

However, minimum wages in some states will increase later this year. These include: The following states passed laws to eventually reach a $15 minimum wage.