{"id":357865,"date":"2016-04-04T10:45:29","date_gmt":"2016-04-04T15:45:29","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/wages-and-benefits\/minimum-wage-and-overtime-basics.html"},"modified":"2025-03-24T00:00:00","modified_gmt":"2025-03-24T05:00:00","slug":"minimum-wage-and-overtime-basics","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/minimum-wage-and-overtime-basics.html","title":{"rendered":"Minimum Wage and Overtime Basics"},"content":{"rendered":"\n
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Minimum Wage and Overtime Basics<\/h1>\n
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\n By Lisa Burden, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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The federal minimum wage is $7.25 per hour, with higher rates in some states and cities. Overtime for non-exempt employees is paid at 1.5 times the regular rate for hours worked beyond 40 per week. Certain workers like administrative and professional employees are exempt from these rules.<\/p>\n\n <\/div>\n\n

The wage and hour divisions of the labor departments of the federal government and state governments enforce employment laws. They oversee and investigate complaints and violations of worker pay. Most wage and hour laws apply to full-time employees. The federal Fair Labor Standards Act (FLSA) does not address part-time workers<\/a> and independent contractors<\/a>.<\/p>\n

Federal and state labor and employment laws protect workers\u2019 pay. Legal help is available if you believe your employer has shorted you on your wages. Contact an employment attorney<\/a> in your area for legal advice.<\/p>\n

Below you will find information on minimum wage and overtime pay. Overtime pay is also called \u201cpremium pay."<\/p>\n

Minimum Wage Requirements<\/h2>\n

The Fair Labor Standards Act (FLSA) sets federal minimum wage requirements. Federal law requires that most employees receive an hourly rate of at least $7.25. The federal minimum wage was last raised in 2009<\/a>. However, other laws matter.<\/p>\n

Many states and cities<\/a> have set a higher minimum wage than the federal standard. If the state has established a state minimum wage, that minimum wage rate applies if it is higher than the federal minimum wage. Similarly, some cities have set a higher minimum hourly wage than that required under the FLSA. The local rule applies if the local government’s hourly rate exceeds the federal minimum wage. The idea is that the federal minimum wage is a floor, not a ceiling.<\/p>\n

In addition, overtime hours may have a different calculation under state law. Under federal law, overtime pay must be provided when you work over 40 hours in a workweek as a full-time employee. But, in some states and municipalities, if you work more than eight or 10 hours in one day, overtime pay requirements come into play. It does not matter whether you work more than 40 hours a week.<\/p>\n

There are some exceptions to minimum wage laws. For example, youths<\/a> can receive a minimum wage of $4.25 an hour on a short-term basis. Tipped employees<\/a> can receive just $2.13 an hour.<\/p>\n

When in doubt, employers typically assume that minimum wage laws cover a worker.<\/p>\n

Youth Minimum Wage<\/h2>\n

Federal and some state laws allow employers to pay a lower minimum wage to employees under 20 years old. This lower wage rate is sometimes called a "training wage" or "youth minimum wage<\/a>." Federal law sets this lower minimum at $4.25 per hour.<\/p>\n

Employers may pay the lower wage <\/a>only for the first 90 calendar days of employment and must not displace a higher-paid worker to pay another worker a lower wage.<\/p>\n

Federal law<\/a> forbids child labor. Although state laws may differ, the FLSA mandates that minors be at least 16 years of age to work in most non-farm jobs.<\/p>\n

Tipped Employees<\/h2>\n

Under federal law, an employee who regularly receives tips<\/a> as a part of their pay gets a minimum wage of $2.13 per hour. To qualify, employees must regularly earn more than $30 per month in tips and retain all tips earned.<\/p>\n

The combined tips plus wages must add up to at least the $7.25 per hour federal minimum wage. If tips plus wages do not meet that minimum, the employer must make up the difference.<\/p>\n

Exemptions from Minimum Wage Requirements<\/h2>\n

Federal law and many state laws mandate that certain types of employees are exempt<\/a> from minimum wage requirements. Exempt employees include:<\/p>\n