Overtime Pay And Minimum Wage

Overtime pay is the compensation nonexempt (eligible) employees are due for hours worked in excess of 40 in one working week.

There are Federal Laws regulating overtime pay as long as the employee is not exempt. The rate of overtime pay is 1 ½ times the employees regular rate of pay.

Minimum wage is the lowest wage that an employee can receive in most employment situations as designated by Federal Law. However, some states may regulate a higher minimum wage than that of the Federal Government. At this time, Federal Law places minimum wage at $6.55 per hour. The minimum wage law does not apply to all situations.

Federal Law allows employers that have employees in their business under the age of 21 to be paid lower than the federal minimum wage. In most cases for those under the age of 21, the minimum wage is known as “youth minimum wage” or “training wage”. Federal Law designates the minimum wage for those under the age of 21 to be $4.25 at the time of this writing. However, by Federal Law this lower wage can only be paid during the first three months or 90 days of their employment.

If an employee is one that receives tips such as a waiter or waitress, the Federal Law places minimum wage at $2.13 per hour. In order to pay an employee this wage, the employee must receive over $30 in tips every month and be allowed to keep the tips he/she receives. In cases, where the tips and the lower minimum wage does not equal $6.55 per hour the employer must make up the difference.

Some employees are exempt from minimum wage regulations by Federal and some state laws. The employees that are exempt include administrative, executive, full-time college students, outside sales employees, professional, workers on some farms, and workers employed in the fishing industries, to name a few.

If you have questions or believe, you have been treated unfairly when it comes to your wages or overtime pay, consulting with an employee rights lawyer in your state would be in your best interest.