MightyRecruiterWage and hour laws exist at both the state and federal level, and they help regulate how and when employees may work and how they must be compensated. More specifically, they typically dictate how many hours a day or how many days in a week employees may work, and they also set standards for certain age groups — for example, those who employ workers under the age of 18 often must adhere to different wage and hour laws than those that apply to adults. These laws also often take into account additional criteria, such as how and when overtime pay must be given and whether employees will receive sick days, paid time off or breaks during work hours. Because laws vary from state to state, it is critical that employers become familiar with any state and federal wage and hour laws that apply to them.
Minimum Wage Considerations
All U.S. employees covered by federal minimum wage laws must be paid at least the federal minimum wage of $7.25 per hour. However, states are allowed to set their own minimum wage standards, as long as the state minimum wage does not fall below the federal minimum wage. Employers that operate in states that do not currently have their own minimum wage laws must at least adhere to the federal standard of $7.25. While minimum wage regulations apply to most U.S. employees, a number of exceptions do exist. Examples of those who are considered exempt from minimum wage laws include some agricultural workers and government employees, among others. All non-exempt employees must be paid in accordance with the regulations set forth by the Fair Labor Standards Act.
Minimum Wage Guidelines for Tipped Employees
Federally and in many states, employees who receive $30 or more a month in tips as part of their jobs are subject to different minimum wage laws than other types of employees. At the federal level, employers must pay workers who receive tips $2.13 an hour, provided the workers tipped hourly income is at least another $5.12. The tipped income and hourly wage must together meet the federal minimum wage of $7.25 per hour. Some states set their own minimum wage requirements for tipped employees, and in some states (Washington, for example), the minimum wage is the same for both employees who receive tips and those who do not.
Overtime Pay Guidelines
With the exception of exempt employees, all U.S. employees who work more than 40 hours in a standard workweek must be paid overtime at a rate of one-and-a-half times their normal rate for that extra time per the FLSA. There are, however, some exceptions and special circumstances. Airline employees and outside sales staff are among the employees who may not be held to the federal standard. Some states also set their own laws regarding overtime pay, and in situations where employees are governed by both state and federal laws, employers must adhere to whichever guideline results in more money for the employee.
When Employees Must Be Paid
Most states set their own rules regarding how frequently employers must compensate their workers. Generally, employers are required to pay employees either every other week or twice monthly, although this doesnt hold true for all states. Some do not set pay-frequency regulations at all, and others set different guidelines for different professions. It is essential that todays employers fully comprehend applicable rules regarding pay frequency to ensure employees receive their proper and legal pay.
Break and Meal Period Considerations
Federal laws do not require U.S. employers to grant breaks or meal times to employees. However, each state may set its own laws regarding breaks and meal times, so it is important that employers accurately understand existing break laws. When employees are granted breaks, short ones are typically considered compensable. Meal breaks of 30 minutes or more are usually not considered compensated work time — although exceptions exist — and therefore employers typically do not have to pay employees for these periods. However, state laws vary, and it is best that an employer have a thorough understanding of the laws in the state in which it operates.
Paid Time Off and Sick Pay Considerations
Federal wage and hour laws do not dictate that employers must offer their employees paid time off or sick pay. States and municipalities may set their own guidelines in these areas, but generally, whether to offer these accommodations is left up to the employer. It is important for todays employers to note differences that exist between federal and state wage and hour laws. Its also essential that employers fully understand which apply to them to ensure they remain compliant and avoid potential litigation.