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Wage Laws for Small Businesses (Cont'd)>> <<Back to 1 |
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Knowing the Minimum Wage Rates Can Keep An Employer Out of Trouble
To determine whether an employer complies with the FLSA, it is first necessary to understand minimum wage rates. The FLSA mandates that every employer shall pay to each employee engaged in commerce or in the production of goods for commerce wages utilizing the following guidelines: $5.15 per hour beginning September 1, 1997; Employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer; Certain full-time students, apprentices, and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Department of Labor; "Tipped employees" must receive a cash wage of at least $2.13 per hour. If an employee's tips combined with the employer's cash wage of at least $2.13 per hour do not equal the minimum hourly wage, the employer must make up the difference.
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Notably, Massachusetts employers are subject to a higher minimum wage rate. As of the date of this publication, the state minimum wage rate is set at $6.00 per hour. See G.L. ch. 151, § 1. And, the state minimum wage automatically increases to 10 cents above the rate set under the FLSA if the federal minimum wage equals or becomes higher than the state minimum.
It is important for Massachusetts employers to note that where federal and state law have different minimum wage rates, the higher Massachusetts standard applies. Therefore, a wage of less than $6.00 per hour, in any nonexempt occupation within Massachusetts, shall be considered a violation of the minimum wage law even though the employer complies with the FLSA minimum wage of $5.15 an hour. Finally, deductions made from wages for "work related" items such as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal if they reduce an employee's wages below the minimum wage or the amount of overtime pay due under the FLSA. |
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