Minimum Wage Law: Part-Timers' Rights Explained

The Fair Labor Standards Act (FLSA) sets a federal minimum wage of $7.25 per hour for employees. This law applies to employees of enterprises with an annual gross volume of sales or business of at least $500,000. It also applies to employees of smaller firms if they engage in interstate commerce or produce goods for it. While the FLSA does not address part-time employment, it is safe to assume that it covers part-time workers as well, as long as they meet the criteria mentioned.

Part-time employment and the Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and in federal, state, and local governments. The FLSA does not differentiate between part-time and full-time workers; the same rules apply to both.

The FLSA sets a federal minimum wage of $7.25 per hour, effective 24 July 2009. However, many states also have their own minimum wage laws, and in cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher rate.

The FLSA requires that covered, nonexempt workers be paid at least the federal minimum wage of $7.25 per hour and overtime pay at a rate of not less than one and a half times their regular rate of pay after 40 hours of work in a workweek. There is no limit on the number of hours employees aged 16 or older can work in any workweek, and the FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless overtime is worked on those days.

The FLSA also does not define full-time or part-time employment; this is generally determined by the employer. However, the FLSA does provide certain exceptions and special considerations for specific types of workers, such as students, youth, and tipped employees. For example, 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, provided their work does not displace other workers.

In addition to the federal minimum wage, some cities and counties have passed "living wage" laws, which may set an even higher minimum wage. As an employer, you must pay whichever amount is highest—federal, state, or local.

Minimum wage for tipped workers

In the United States, the Fair Labor Standards Act (FLSA) sets the federal minimum wage for covered non-exempt employees at $7.25 per hour. This applies to tipped employees, who may be paid a special hourly rate as long as their tips bring their total earnings up to or above the minimum wage. If a tipped employee's earnings do not meet or exceed the minimum wage, the employer is required to pay the difference.

Federal law allows employers to pay tipped workers a lower base wage of $2.13 per hour, with the expectation that tips will make up the remaining $5.12 to reach the federal minimum wage. This is known as taking a "tip credit". Employers who choose to take a tip credit must adopt a policy explaining this to their employees. However, it's important to note that not all states permit employers to take a tip credit.

Some states have their own minimum wage laws that apply specifically to tipped employees. When both federal and state wage laws apply, employees are entitled to the provisions that provide the greatest benefits. For example, the minimum cash wage for tipped workers in the District of Columbia is $8.00 per hour, and it is scheduled to increase gradually until it reaches the full minimum wage. In Hawaii, the combined amount from the employer and tips must be at least $7.00 more than the applicable minimum wage.

It's worth noting that the minimum wage laws mentioned above apply regardless of whether an employee is considered full-time or part-time. The FLSA does not differentiate between full-time and part-time employment in its application.

Minimum wage for young workers

The Fair Labor Standards Act (FLSA) does not differentiate between part-time and full-time workers. All employees, regardless of their classification, are entitled to receive at least the federal minimum wage. The FLSA covers most employers, but some are exempt, including independent contractors, outside salespeople, and apprentices.

Now, when it comes to young workers, the situation is a little more complex. While the FLSA does mandate a minimum wage for young workers, it is often lower than the standard federal minimum wage. For example, in the United States, 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, provided their work does not displace other workers. After 90 days of employment or when the worker turns 20, whichever comes first, the minimum wage increases to the standard federal rate of $7.25 per hour.

It is important to note that some states and cities in the US have implemented their own minimum wage laws, which may include higher rates or additional exceptions for young workers. For instance, several US states and cities that recently increased their minimum wages, such as California, Illinois, and Maryland, included an exception for younger workers.

The rationale behind reduced minimum wages for young workers is to facilitate their entry into the labour market, as they often lack work experience and skills. However, critics argue that this could lead to discrimination against young people, who are not necessarily less productive. As a result, some countries, like Slovenia, have removed or restricted provisions that fix lower minimum wages for young workers.

In conclusion, while the FLSA does not differentiate between part-time and full-time workers, it does set a lower minimum wage for young workers, which may be further modified by state or local laws.

Minimum wage for student workers

The Fair Labor Standards Act (FLSA) requires that all covered, non-exempt employees be paid at least the federal minimum wage of $7.25 per hour. However, the FLSA does not differentiate between part-time and full-time employees, meaning that the minimum wage law applies equally to both.

There are, however, exceptions to the minimum wage law for certain categories of workers, including students. The FLSA allows employers to pay a special minimum wage of $4.25 per hour to young workers under the age of 20 during their first 90 consecutive days of employment. After this period, or when the worker turns 20, they must be paid the full federal minimum wage.

There are also specific programs for full-time students and student-learners, which allow employers to pay a sub-minimum wage. The Full-Time Student Program is for students working in retail, service stores, agriculture, or educational institutions. Employers can obtain a certificate from the Department of Labor, which allows them to pay students no less than 85% of the minimum wage. The program also limits students to working no more than 8 hours a day and 20 hours a week during the school term, and 40 hours a week when school is out. Once students graduate or leave school, they must be paid the full federal minimum wage.

The Student-Learner Program is for high school students aged 16 and over who are enrolled in vocational education. Employers can obtain a certificate from the Department of Labor, which allows them to pay students no less than 75% of the federal minimum wage for as long as they are enrolled in the program.

It is important to note that these programs have limitations and conditions that must be met, and employers should contact the Department of Labor for more information. Additionally, state and local laws may have different or additional requirements, and employers must comply with the standard that provides the greatest benefit to the employee.

Employees who aren't entitled to minimum wage

In the United States, the Fair Labor Standards Act (FLSA) sets the federal minimum wage for covered nonexempt employees. However, there are several categories of workers who are exempt from the federal minimum wage law. Here are the employees who aren't entitled to minimum wage:

• Independent contractors: Only employees are covered by the minimum wage law, and independent contractors are not considered employees.
• Outside salespeople: Salespeople who work outside the typical office environment, such as those who work on a route, are exempt.
• Workers on small farms
• Switchboard operators employed by phone companies with no more than 750 stations
• Employees of seasonal amusement or recreational businesses
• Employees of local newspapers with a circulation of less than 4,000
• Newspaper deliverers
• Apprentices, students, and learners: These individuals are defined by federal law and are subject to different minimum wage rates or exemptions.

It is important to note that even if a business or employee is exempt from federal minimum wage laws, they may still be covered by state or local minimum wage laws, which often set higher minimum wages than the federal rate. Additionally, some states have specific minimum wage laws for tipped employees.

In Ontario, Canada, the Employment Standards Act (ESA) outlines the minimum wage requirements. While most employees are covered by the ESA, there are some exceptions. Employees who are not entitled to the minimum wage under the ESA include:

• Employers and employees governed by federal law: This includes industries such as airlines, banks, and post offices.
• Students participating in school or university-run work programs
• Workers doing community participation work under the Ontario Works Act
• Police officers, judicial officers, and elected union officials
• Major junior hockey players who meet certain scholarship conditions

It is important to consult with employers and legal professionals to understand how wages are regulated if an individual is not covered by the ESA.

Frequently asked questions