Minimum wage question

[chikenlady]

How do places in the states get away with paying people less than minimum wage?
Is it not illegal? Just wondering cuz up here minimum wage means just that, the least amount ANYONE can be paid.

[Racket_Man]

It depends on the position and age of the employee

In the US the floor wage for tipped positions is $2.13 (or $2.33). this is because the person makes tips that are used to bring the person up to minimum wage (the US Federal floor is $7.25 but there are some states and localities where higher minimum wage is the law of that locality).

All other postions are supposed to pay at least the Federally mandated $7.25 per hour.

There is also a seperate wage for students under 17 (insome places) along with restrictions on how many hours a day/week they can work and when (meaning times of the day) they can work.

[Gizmo]

Apart from the exception mentioned above: By hoping they don't get reported or checked up on. If they can keep it under the rug and keep their employees convinced that reporting it isn't in their best interests then they get away with it.

Also despite the relatively easy access to information these days a lot of people just don't know what rights they do have and don't press for them. Or believe any job - even one which is taking advantage or paying under minimum wage - is better than no job because they got fired for rocking the boat.

[EricKei]

Note that individual states are allowed to set their own minimums higher than the Federal minimum. e.g., according to WP -- Cali will go up to $10.55/hr starting January 1; Several other states are already above $8.

For tipped workers -- if they do NOT actually earn enough to make up the difference between 2.13 and 7.25, the business is required to pay them the difference (because these workers are taxed based on 7.25/hr)...but, it may not actually happen. tbh, if someone is working at a waiter-type job where they consistently do not really earn enough to cover that difference, they're likely better off seeking work elsewhere, as the place probably isn't getting much business at all, and/or could have managers who will refuse to make up the difference or even threaten to fire a worker for asking. Note that a few states have higher "tipped worker" minimums.

"Exempt" workers may be a special case. Also, businesses under a certain size *may* be exempt, but that is definitely a "do research for your particular state" situation.

[thehuckster]

I think it should also be noted that some self-employed contact (1099) workers theoretically can make less than minimum wage, although that's only in very special cases, such as if a contract worker agreed to do a certain project for X dollars and their production time greatly exceeded their expectations, to the point where they were effectively making less than $7.25 an hour.

Most contractors like that, though, don't last very long.

[dalesys]

Quoth thehuckster

Most contractors like that, though, don't last very long.

Or are at the on-ramp with a sign: "Will eat for money."

[bhskittykatt]

I can also see it happening if you get paid by piecework. My paper route pay is a combination of piecework and compensation on the size of the area, rather than by hourly wage. It works out to well over minimum wage for me, but I can see a similar pay structure leading to something working out to less.

[Moirae]

Generally, because it doesn't mean anything if they do. My last place of employment was investigated three times in 6 months for adjusting time cards and they were still doing it when they fired me for a 2% error ratio (considering that I did 4000 reservations/cancellations/modifications in the time that I was there, a 2% error ratio is very good. In any other reservations office that is. But the owners daughter is batshit crazy). The most they ever got was lectured by the Labor Board, nothing more. Companies only do this stuff because they can. My state has work at will too.

[Kristev]

All states at-will firing. Only Montana has the merest semblence of a defense - the bad faith concept.