labor lawAdivision of labor law center

The Idaho minimum wage will increase by 70 cents from $5.85 to $6.55 on July 24, 2008. That change mirrors an increase in the federal minimum wage on the same date.

Under Section 44-1502 of the Idaho Code, most employees in the state may not be paid less than the minimum wage.

The Idaho Legislature passed House Bill 184 in 2006, which states that Idaho’s minimum wage will conform to the federal minimum wage. That law went into effect on July 24, 2007. In addition, the Idaho Legislature froze the wage for tipped employees at $3.35 per hour, and it will not increase as the minimum wage does. However, employers are still required to show that tipped employees are earning at least the new minimum wage when tips are included.

Tipped employees in Idaho can currently be paid $3.35 per hour. That rate will be unchanged under the new minimum wage. Tipped workers are those who earn more than $30 per month in tips, and are engaged in an occupation in which he or she customarily and regularly receives tips. If a tipped workers cash salary plus tips are less than the minimum wage, the employer must pay the difference. Beginning on July 24, 2008, that means that tipped workers must average $3.20 per hour in tips over the payroll week.

State law permits employers to pay an “opportunity wage” of $4.25 per hour to workers under 20 years of age, during their first 90 consecutive calendar days of employment with an employer.

Under Idaho law, when a worker is terminated, he or she must be paid within 10 days or on the next regularly scheduled payday, whichever is sooner. However, if the terminated employee makes a written request for earlier payment, he or she must be paid within 48 hours. Weekends and holidays are excluded.

All state minimum wage and wage payment laws are enforced by the Wage and Hour Section of the Idaho Department of Labor.

Idaho does not have an overtime law at the state level. Instead, most workers are entitled to 1.5 times the usual hourly rate when working over 40 hours per week, under federal law.

Every Idaho employer is required to display a current Idaho minimum wage poster in a conspicuous place where it can be viewed by employees.

Idaho More Minimum Wage

There are a number of exceptions to the Idaho minimum wage law detailed in Section 44-1502 of the Idaho Code. The state minimum wage law does not apply to executives, administrators or professionals, to independent contractors or outside salespeople. Seasonal workers are also exempt.

Domestic workers are also exempt from the Idaho minimum wage. So are workers under the age of 16 working part-time or at odd jobs for a single employer. However, these youths must be working no more than 4 hours per day.

Some agricultural workers are exempt from the Idaho minimum wage law. To be exempt, an agricultural worker must be older than 16 years of age and employed by a parent, spouse, child or another member of his or her immediate family. Alternatively, the employee may be hired on a piece-rate basis to harvest a crop, but only if the worker has been employed in agriculture less than 13 weeks during the preceding calendar year.

Under state law, an Idaho employer may not withhold any portion of the worker’s wages unless a) the employee has given written permission or b) the employer is required to under state or federal law. Employees often give permission for employers to withhold 401K contributions, health insurance premiums and similar deductions. Examples of deductions required by state or federal law include FICA and income tax withholding.

In most cases, an Idaho employer cannot make any deductions to a paycheck that will result in the employee earning less than the minimum wage, even with the employee’s permission. If an employer gives a worker an advance or draw against future wages, the employer cannot withhold the entire amount from any future paycheck, because that will result in the employee earning nothing in that payroll period.

Idaho employers are not required to pay the minimum wage to independent contractors. However, the state sets strict guidelines for who can be included in that category. Under state law, an independent contractor is free from direction and control over how the work is performed. Generally this means that, among other things, the employer cannot dictate when or where the work is performed. Some Idaho laws require that independent contractors be established businesses. This may include having business income and business expenses. Tax Representatives at the Idaho Department of Labor assist employers and workers in making determinations on who is an independent contractor.

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