labor lawAdivision of labor law center

Most Louisiana employers were affected on July 24, 2009 when the federal minimum wage increased from $6.55 to $7.25 per hour.

There is no Louisiana minimum wage. Louisiana is one of 5 US states that have no minimum wage. The others are Alabama, Mississippi, South Carolina and Tennessee. In these states, an employer who is not covered by the federal minimum wage law can legally pay just $1.00 per hour – if they can find an employee willing to work for that amount.

The federal minimum wage law is the FLSA or Fair Labor Standards Act, passed in 1938. The FLSA applies to businesses with annual revenue of $500,000 or more. It also applies to individual employees who are engaged in interstate commerce as a portion of their work duties. Examples of interstate commerce would be a retail clerk who accepts credit cards as payment, a secretary who uses the internet or email, or a switchboard operator who answers out-of-state phone calls.

Every Louisiana employer should (more…)

On July 24, 2009 the Pennsylvania minimum wage increased by 10 cents, from $7.15 per hour to $7.25 per hour.

Many employers wonder why all the fuss about such a small amount of money. However, under state law the Pennsylvania minimum wage cannot be less than the federal minimum wage. When the federal rate increases by 70 cents from $6.55 to $7.25 per hour later this month, by statute, the Pennsylvania minimum wage must increase, as well.

The last increase to the Pennsylvania minimum wage was to $7.15 per hour on January 1, 2007.

Each time the federal or Pennsylvania minimum wage increases, employers must display updated labor law posters. 

Both the Pennsylvania minimum wage and the federal minimum wage increased in 2007 from $5.15 to $5.85 and again in 2008 from $5.85 to $6.55.

The Pennsylvania minimum wage for tipped employees remains at $2.83 per hour. However, if the employee does not average $4.42 per hour in tips over the payroll period, the employer must pay the difference.

The new federal minimum wage essentially eliminates the Pennsylvania training wage. Under state law, an employee under the age of 20 could be paid a lower “training wage” equal to the federal minimum wage during the first 60 days of employment. However, under the current law, the federal and state minimum wage are the same and employers must pay the minimum wage from the first day of employment.

Though this increase may create hardship for employers in this struggling economy, 2009 is the last scheduled increase for the federal minimum rate. At this time, no increase is scheduled for 2010.

Pennsylvania state minimum wage covers the smaller employers. The Pennsylvania minimum wage law is enforced by the Bureau of Labor Law Compliance, a part of the Pennsylvania Department  of Labor and Industry. 

The remaining companies are covered by the (more…)

The federal minimum wage increased by 70 cents from $6.55 to $7.25 per hour on July 24, 2009.

Employers should update their federal minimum wage poster. Under the law, an employer who fails to prominently display an updated poster where all employees may see it, can be subject to fines.

This increase affects employers differently, depending upon which state the employer is in. By law, when an employee is covered by both the state and federal minimum wage, the employee is entitled to the higher minimum wage.

For example, while the new federal minimum wage is $7.25 per hour, (more…)

On July 24, 2009 when the federal minimum wage increases, the Montana minimum wage will go up, as well.

The Montana minimum wage will increase from $6.90 to $7.25 per hour. Under state statute, the Montana minimum wage cannot be lower than the federal minimum wage.

When the federal minimum wage changes and/or when a state’s minimum wage changes, employers must display updated labor law posters for all employees. Updated posters are available now at www.laborlawcenter.com.

This is the second minimum wage increase in a year – in the middle of a recession – for beleaguered Montana employers. On January 1, 2009 the state minimum wage increased by 35 cents from $6.55 to $6.90 per hour. Now, less than 8 months later, it is slated to increase again.

Both the January and July Montana minimum wage increases were (more…)

Most employers in the state are already aware that on July 24, 2009 the Florida minimum wage will increase by 4 cents from $7.21 to $7.25 per hour. That is because the federal minimum wage increases on that date – and by statute, the Florida minimum wage cannot be lower than the federal minimum wage.

However, many Florida employers have questions about the effect this will have on the Florida minimum wage for tipped workers.

Currently, under Florida law, employers are permitted to take a “tip credit” of up to $3.02 per hour. This means that the Florida employer can pay a worker who regularly earns tips $3.02 per hour less than the minimum wage.

That makes the Florida tipped minimum wage $4.23 per hour beginning July 24, 2009. That is 4 cents per hour higher than the Florida tipped minimum wage of $4.19 established on January 1, 2009.

However, the tip credit the employer takes in any payroll week cannot be greater than the actual tips earned by the employee. If the employee earns less than $3.02 per hour in tips on average over the payroll week, the employer must pay the difference.

Suppose John is a food server in Miami. His hourly rate is $4.23. During John’s first week, he works 20 hours and earns just $20 in total tips. That is an average of $1 per hours in tips. The employer must pay John an additional $2.02 for each hour that John worked, to bring his total earnings up to the minimum wage of $7.25 per hour. The employer adds $40.40 to John’s paycheck as a “tip differential.” This is the difference between the salary plus tips actually earned, and the minimum wage.

John earns $4.23 per hour x 20 hours = $84.60 in wages. In addition, (more…)