Is minimum wage a state or federal issue?

Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.

What happens if the state minimum wage is lower than federal?

What Happens if a State’s Minimum Wage Is Lower Than the Federal Minimum Wage? In places where the state minimum wage is lower than the federal wage, workers who come under the Fair Labor Standards Act earn the federal wage. If workers don’t come under the FLSA, they can be paid less.

What is the purpose of minimum wage in the US?

Purpose of Minimum Wage. When a locality decides its own wage, the purpose of the wage may change. For example, the purpose of the minimum wage in Santa Fe is to provide a living wage for all employees, while the purpose of the minimum wage in other localities and states is simply to ensure that all employees receive fair pay for their work.

Do you have to pay minimum wage in every state?

any state to learn about applicable minimum wage laws. No state minimum wage law. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour. Basic Minimum Rate (per hour): $10.34

What is the basic minimum wage in New York State?

Basic Minimum Rate (per hour): $5.15. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate. Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.

When did MiniMUN wage start?

The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. Congress enacted this legislation under its Constitutional grant of authority to regulate interstate commerce.