Tuesday, February 23, 2010

Minimum Wage Violations: An Employee's Guide

Minimum wage violations are among the most common forms of employment abuse in the U.S., affecting all positions in a wide range of industries. While federal law entitles each worker to a minimum hourly rate, not all employers comply, and not all underpaid workers take action against it. This article offers basic information on minimum wage law and what employees can do to get their time's worth.

How is minimum wage determined?
The Fair Labor Standards Act (FLSA) sets a national minimum wage every year based on current living conditions and general way of life. As of July 24, 2009, the rate was $7.25 per hour. Individual states can set higher minimum wages, but the hourly rate must never be lower than that of the state unless circumstances justify it. An employer who pays less than the minimum must inform the employee of the fact and provide valid reasons for doing so. Otherwise, the employee can sue for minimum wage violations and demand compensation for lost income and other damages.

How are the laws violated?

The simplest way an employer can break minimum wage law is by simply paying them less than the required amount. However, certain acts that limit a person's income, even indirectly, can constitute a violation. These include:
- Paying less for a portion of the total hours worked, even if the average meets the minimum requirement
- Deducting pay for shortages, breakages or uniforms
- Forcing workers to forward part or all of the tips earned
- Forcing workers to work strictly for tips or commissions
- Requiring minimum wage or close-to-minimum wage workers to perform tasks before clocking in, after clocking out, or during breaks

When is it exempted?
Some circumstances allow employers to legally pay less than minimum wage. For example, the FLSA states that people who make at least $30 in tips per month can be paid less provided that the tips bring the total up to the minimum wage standard. If the tips do not average out the hourly wage, the employer will have to pay the difference. In any case, employees should always be informed of minimum wage exemptions before starting on the job.

This article should not be taken as legal advice.

Learn more about minimum wage violations at The Shavitz Law Group, P.A. Serving clients throughout Florida.

No comments: