A revised Federal minimum wage poster, reflecting the recently enacted minimum wage increases, is now available free of charge on the Department of Labor’s Web site. Every employer of employees subject to the Fair Labor Standard Act’s minimum wage provisions must post a notice explaining the Act in a conspicuous place in all of their establishments so that employees can read it without difficulty.
Effective July 24, 2007, the federal minimum wage for covered non-exempt employees will be $5.85 per hour. The minimum wage increases to $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009.
The tip credit provisions of the federal F.L.S.A. remain the same. An employer is still required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at the least the Federal minimum wage, provided the employer has informed the employee of the tip credit being taken, the employee retains all tips except to the extent they participate in a valid tip pooling arrangement, and the employee customarily and regularly receives more than $30 a month in tips.
Many states also have minimum wage laws. Covered employers must comply with both federal and state requirements. In Minnesota, for example, there are several minimum wages, depending on the size of the organization:
Large employer — $6.15 an hour. “Large employer” is defined as any enterprise whose annual gross volume of sales made or business done is not less than $625,000.
Small employer — $5.25 an hour. “Small employer” is defined as any enterprise whose annual gross volume of sales made or business done is less than $625,000.
Training wage — $4.90 an hour. An employer may pay $4.90 an hour to new employees who are younger than age 20 during their first 90 consecutive days of employment. Permanent or current employees may not be displaced by new employees covered by the training wage.
Minnesota law does not provide a tip credit such as that found in the federal law.
Minnesota recognizes the following exemptions from state minimum wage requirents (among others): babysitters, taxicab drivers, volunteers of nonprofit organizations, elected government officials, people providing police or fire protection, and employees subject to the provisions of the U.S. Department of Transportation (drivers, drivers’ helpers, mechanics and loaders).