In 1938, the Fair Labor Standards Act (FLSA) was signed into law to establish a standard minimum wage. The law also created a standard in recordkeeping, the use of child labor, and the number of hours an employee may work during a workweek. These standards of the FLSA are enforced by the Wage and Hour Division of the U.S. Department of Labor.
As part of the 2007 Fair Minimum Wage Act, the current federal minimum wage for nonexempt employees is $7.25 per hour. However, many states also have their own minimum wage laws. If an employee is faced with both the federal and state minimum wage laws that employee is to acquire the higher minimum wage, which is the most beneficial to the employee.
According to the United States Department of Labor,
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As of December 31, 2015, the wage paid to employees in the fast food industry in New York City is $10.50 per hour and $9.75 per hour for workers in the rest of the state. Under state law, employers must pay at least $2.13 an hour to the employee even if the employer includes tips earned as part of an employee’s wage. However, if the combined hourly wage and the tips of the employee do not reach the minimum wage requirement, the difference must be compensated by the employer. In New York’s hospitality industry the minimum wage for tipped workers is $7.50 per hour if enough tips is earned. For other tipped workers, an individual must earn at least $1.35 per hour in tips in order to receive $7.65 per hourly wage, or $6.80 per hour if the individual can earn at least $2.20 per hour in …show more content…
When planning and establishing a wage/salary for employees of a company, many considerations should be addressed according to current economic situations as well as current federal, state, and/or international minimum wage laws. Other factors such as employee benefits and/or bonuses should also be considered in terms of setting employees’ salaries. Although all corporations must adhere to the laws, HR should consider and expect future budget increase and be able to create and establish a beneficial salary/wage for employees that would allow the corporation to be competitive while being cost