Explaining the Department of Labors new overtime rule that will benefit 4 3 million workers Economic Policy Institute

While 2.9% of hourly workers ages 16 to 24 earn $7.25 an hour or less, 1.1% of hourly workers ages 25 to 34 earn the minimum wage. Less than 1% of hourly workers older than 35 years old earn the minimum wage. Of all the hourly workers in the US, some are more likely to earn the federal minimum, based on factors like age, occupation, education level, race, and gender. In an April 2021 Pew Research Center poll, more than six in 10 respondents (62%) said they support raising the minimum wage to $15 an hour. 6 In Nevada, the minimum wage is $11.25 per hour for employees not offered qualifying health insurance by their employer and $10.25 per hour for employees offered qualifying health insurance by their employer. The minimum wage increased to $14.00 on July 1, 2022, and $15.00 on June 1, 2023.

Inflation indexing

“The biggest factor in the minimum wage adjustments for 2023 is the high rate of inflation seen in the last year,” Deirdre Kennedy, senior payroll analyst at the data research firm Wolters Kluwer, said in a statement. “Different states are setting their own rules, including a cap on the percentage minimum wage can increase.” Though the federal minimum wage has remained at $7.25 for more than a decade, 23 states increased their hourly base pay at the start of 2023. In the state of Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, same minimum wage are applied for both tipped and non-tipped employees. Tips collected by employees in these states will not offset employer’s obligation to pay the wage, and tips are additional income beyond the wage paid by employer.

Less-educated people were more likely to earn the minimum wage than college graduates

The minimum wage initially kept pace with inflation, but that stopped in the late 1960s. If it still followed that trend, the base hourly wage in this country would be over $23 an hour, according to the Center for Economic and Policy Research. The Bureau of Labor Statistics reports that hourly paid workers earning Minimum Wages in USA the federal minimum wage (or less) made up 1.4% of the American workforce in 2021. The federal minimum wage has been $7.25 since 2009.While many states require employers to pay more, $7.25 is the default in the 20 states with a minimum wage that’s either equal to or below the federal rate, or that have no minimum.

• As these changes occur, job duties will continue to determine overtime exemption status for most salaried employees.
• Some were the result of automatic adjustments, while others came via new state laws or ballot initiatives.
• Last spring a WalletHub study ranked Louisiana as the worst state in America for working mothers with data showing moms here are shortchanged on everything from pay to childcare.
• Your state may also have different minimum wages for employees who receive tips.
• Wages per month are calculated as 4.33 times if a weekly wage is defined.
• The division also learned the employer fabricated payroll records and reported fewer hours for the workers to create the appearance of compliance.
• Those increases, which benefit roughly 8.4 million Americans, ranged from 23 cents in Michigan to $1.50 in Nebraska.

Which states have the lowest minimum wage?

Those increases, which benefit roughly 8.4 million Americans, ranged from 23 cents in Michigan to $1.50 in Nebraska. The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. Either party may appeal the ODA to a civil court of competent jurisdiction. The court will set the matter for trial, with each party having the opportunity to present evidence and witnesses. The evidence and testimony presented at the Labor Commissioner’s hearing will not be the basis for the court’s decision.

• In no case shall the Massachusetts minimum wage rate be less than $0.50 higher than the effective federal minimum rate.
• Carter also said employers who pay what he described as “poverty wages” encourage workers to remain dependent on taxpayer assistance like Medicaid and food stamps even while working full time, placing a burden on the state budget.
• Since then, congressional amendments have periodically increased it, most recently to $7.25 in July 2009.
• States and cities can establish their own minimum wages, and many have mandated more than double the federal minimum.
• As of July 1, the annual total compensation[1] requirement for the HCE exemption rises to $132,964/year (up from $107,432/year).
• Of all remaining occupations, 1.1% or fewer hourly workers earn minimum wage.

Exploring how race, ethnicity, and class intersect to affect economic outcomes in the United States. The Louisiana House Labor Committee has already rejected a minimum wage bill in the lower chamber, ending the effort for another year. The WalletHub study ranked Louisiana 50th among states and the District of Columbia as best places for women, ahead of only Oklahoma. A divided US Court of Appeals for the Tenth Circuit panel on Tuesday affirmed a lower court’s 2022 decision that rejected an injunction bid filed by Arkansas Valley Adventure LLC, the company’s owner, and the Colorado River Outfitters Association. Some were the result of automatic adjustments, while others came via new state laws or ballot initiatives. USAFacts is a not-for-profit, nonpartisan civic initiative making government data easy for all Americans to access and understand.

Learn about filing a discrimination/retaliation complaint with the Labor Commissioner’s Office. Alternatively, workers can file a lawsuit in court against their employer. Learn more about the Wage and Hour Division, including the agency’s restaurant compliance assistance toolkit and an overview of FLSA protections for restaurant workers. Workers and employers alike can help ensure hours worked and pay are accurate by downloading the department’s Android and iOS Timesheet App for free in English or Spanish. SACRAMENTO, CA – The U.S. Department of Labor has recovered $245,722 in back wages and damages for 10 cooks after investigators found the owner and operator of four northern California restaurants denied them required overtime and minimum wages knowingly. The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards.

• An employee who has not been paid the minimum wage can bring a legal claim to recover wages due and possibly related damages and penalties.
• Also unchanged are the treatment of bonuses for the purposes of satisfying the compensation threshold.
• There are some employees who are exempt from the minimum wage law, such as outside salespersons, individuals who are the parent, spouse, or child of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards.
• The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate.
• While the final rule affects a large portion of the U.S. workforce, the DOL regulations remain unchanged for the earnings thresholds for white collar exempt employees in U.S. territories, the motion picture industry, and computer employees.
• This represents an almost 65% increase in the minimum exempt salary threshold by January 1.

We frequently add data and we’re interested in what would be useful to people. If you have a specific recommendation, you can reach us at [email protected]. The Department of Industrial Relations (DIR) recognizes the importance of communicating effectively with individuals, including those with limited English proficiency. DIR is making an effort to provide meaningful services for individuals that speak languages other than English.

• If the minimum wage in a particular area is less than the estimated living wage, the suggestion is that earnings from a full-time minimum-wage job are not enough to support someone without additional income or aid.
• 5 The minimum wage for seasonal and small employers who employ fewer than 6 people in New Jersey is $13.73 per hour.
• While 2.9% of hourly workers ages 16 to 24 earn $7.25 an hour or less, 1.1% of hourly workers ages 25 to 34 earn the minimum wage.
• The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.
• There is a minimum wage of $13.73 per hour for seasonal and small employers who employ fewer than 6 people.
• The premium overtime pay requirement on either a daily or weekly basis is not applicable to employers of fewer than 4 employees.