Fair Labor Standard Act- the short end of the stick

DOL WHD: Questions and Answers About the Fair Labor Standard Act

What is the federal minimum wage?

The federal minimum wage for covered nonexempt employees is $5.15 an hour. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to higher of the two minimum wages.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

What is the minimum wage for workers who receive tips?

An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.

Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law which provide the greater benefits.

Must young workers be paid the minimum wage?

A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer, as long as their work does not displace other workers. After 90 consecutive days of employment or the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $5.15 per hour.

Other programs that allow for payment of less than the full federal minimum wage apply to workers with disabilities, full-time students, and student-learners employed pursuant to sub-minimum wage certificates. These programs are not limited to the employment of young workers.

What minimum wage exceptions apply to full-time students?

The Full-time Student Program is for full-time students employed in retail or service stores, agriculture, or colleges and universities. The employer that hires students can obtain a certificate from the Department of Labor which allows the student to be paid not less than 85% of the minimum wage. The certificate also limits the hours that the student may work to 8 hours in a day and no more than 20 hours a week when school is in session and 40 hours when school is out, and requires the employer to follow all child labor laws. Once students graduate or leave school for good, they must be paid $5.15 per hour.

There are some limitations on the use of the full-time student program. For information on the limitations or to obtain a certificate, contact the Department of Labor Wage and Hour Southwest Region Office at 525 S. Griffin Square, Suite 800, Dallas, TX, 75202, telephone: (972) 850-2603.

What minimum wage exceptions apply to student learners?

This program is for high school students at least 16 years old who are enrolled in vocational education (shop courses). The employer that hires the student can obtain a certificate from the Department of Labor which allows the student to be paid not less than 75% of the minimum wage, for as long as the student is enrolled in the vocational education program.

Employers interested in applying for a student learner certificate should contact the Department of Labor Wage and Hour Regional Office with jurisdiction over their state. The Regional Office addresses and telephone numbers are:

Northeast Region (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, Virgin Islands, Virginia, and West Virginia)

USDOL Wage and Hour Division
Curtis Center
170 South Independence Mall, West
Room 850, West
Philadelphia, PA 19106
(215) 861-5800

Southeast Region (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee)

USDOL Wage and Hour Division
Atlanta Federal Center
61 Forsyth Street SW, Room 7M40
Atlanta, GA 30303
(404) 562-2202

Midwest Region (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin, Iowa, Missouri, Kansas and Nebraska)

USDOL Wage and Hour Division
230 South Dearborn Street
Room 530
Chicago, IL 60604-1591
(312) 596-7180

Southwest Region (Arkansas, Colorado, Louisiana, Montana, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, and Wyoming)

USDOL Wage and Hour Division
525 South Griffin Square, Suite 800
Dallas, TX 75202
(972) 850-2600

Western Region (Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, and Washington)

USDOL Wage and Hour Division
71 Stevenson Street, Suite 930
San Francisco, CA 94105
(415) 975-4510

Other programs that allow for payment of less than the full federal minimum wage apply to disabled workers and full-time students employed pursuant to sub-minimum wage certificates.

How often does the federal minimum wage increase?

The minimum wage does not increase automatically. Congress must pass a bill which the President signs into law in order for the minimum wage to go up.

Who makes sure workers are paid the minimum wage?

The Wage and Hour Division of the U.S. Department of Labor is responsible for enforcing the minimum wage. Using both enforcement and public education efforts, Wage and Hour strives to ensure that workers are paid the minimum wage.

The Wage and Hour Division has offices throughout the country. The phone numbers and addresses for these offices may be found on the Internet or in the federal government "blue pages" section of the telephone book under "Labor Department."

To whom does the minimum wage apply?

The minimum wage law (the FLSA) applies to employees of enterprises that do at least $500,000 in business a year. It also applies to employees of smaller firms if the employees are engaged in interstate commerce or in the production of goods for commerce, such as employees who work in transportation or communications or who regularly use the mails or telephones for interstate communications. It also applies to employees of federal, state or local government agencies, hospitals and schools, and it generally applies to domestic workers.

The FLSA contains a number of exemptions from the minimum wage that may apply to some workers.

The Wage and Hour Division has a Handy Reference Guide to the Fair Labor Standards Act that explains how the law applies. Call 1-888-4-USWAGE (1-866-487-9243) for a printed copy of the guide.

What happens if state law requires a different minimum wage than federal law?

Where state law requires a higher minimum wage, that higher standard applies.

Where to Obtain Additional Information
This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

For additional information, visit our Wage-Hour website: http://www.wagehour.dol.gov and/or call our Wage-Hour toll-free information and helpline, available 8am to 5pm in your time zone, 1-866-4USWAGE (1-866-487-9243).