Legal - Employment Legal Issues
Some Basic Requirements

Some Basic Requirements

In most developed and developing countries there is a minimum wage law. In the United States the minimum wage is currently $5.15 per hour.

There are exceptions to this law. One is the tip credit, which allows an employer to claim a credit of up to 50 percent of the minimum wage for employees who earn tips.

States, in some cases, may impose higher minimum wages. In these cases the state prevails, and employers must pay the state mandated rate to minimum wage earners.

A training wage of 85 percent of the minimum wage may be paid to certain employees under the age of 20 for a limited period of time. The regulations attending to this exception are complex. If you want to avail yourself of this exception, contact the nearest office of the Department of Labor, Employment Standards Division.

Exempt/non-exempt

An exempt employee is basically one who is exempt from minimum wage and overtime requirements. There are tests to be met in order to determine this employee status but, basically, the employees’ work should be professional, administrative, or managerial. They should be paid a salary significantly higher than the minimum wage.

Overtime pay

In the United States overtime pay is mandated at a minimum of one and one-half times regular pay for all hours worked beyond forty in a single week. This rule applies only to nonexempt employees.

Posters

Even if you only employ one person, you need to place certain posters in a highly visible area regularly accessible to your employees—at the entrance to the work area or in a break room, for instance. These posters include U.S. Department of Labor disseminated materials that make public information on the minimum wage, overtime pay, equal pay, child labor, age discrimination, equal opportunity, handicapped workers, employee polygraph protection, and family and medical leave laws. OSHA distributes information regarding worker health and safely that is required posting as well. Some states also issue mandated signage.

Poster requirements change from time to time. As a starting point, contact your nearest Wage of Hour Department of the U.S. Department of Labor for currently applicable posters.