Minimum wage laws in the U.S. set out the minimum hourly rate that employers can pay to their employees.
Federal minimum wage is $7.25 an hour. However, many states and localities have higher minimum wages. This article provides information on minimum wages for workers aged under 18 years old in the U.S. including federal and local regulations.
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Understanding Minimum Wage for Under 18 in the US
All employees in the United States, its territories and possessions are entitled to receive this minimum wage. Currently, the minimum wage set by the federal government is $7.25 per hour. State and local governments are allowed to set their own minimum wage, which is often higher than federal law. 45 states, plus the District of Columbia, have their own laws on minimum wages.
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Why Minimum Wage is Important?
Minimum wage laws are essential because:
- Fair compensation for workers
- Reduce income inequality
- Promote economic development
- Employees’ living standards can be improved
Modifications to Minimum Wage for Under-18s
The minimum wage law can change with time. The government reviews and adjusts these wages in accordance with factors such as inflation and cost of living. Regular updates of the minimum wage support fair compensation as well as economic growth.
Minimum wage for under 18s in the US
The Fair Labor Standards Act allows employers in the United States to pay workers under the age of 18 a minimum wage of $4.25 an hour for the first 90 days they are employed. After 90 days or when the worker reaches 18, the pay will increase to the federal wage of $7.25 an hour.
Minimum Wages Specific to States
States can set higher minimum wage. Here are some examples.
- Washington D.C. : $17.00 an hour
- Washington State $16.28 an hour
- California: $16.00 per hour
- New York City, and selected counties: $16.00 per hour
- Connecticut: $16.69 per hour
States with lower Minimum Wages
Federal regulations prevent most states from imposing minimum wages lower than the federal level.
- Georgia : $5.15 an hour
- Wyoming: $5.15 per hour
- West Virginia: $8.75 per hour
- Minnesota: $8.85 per hour
- Puerto Rico $9.50 an hour
Federal vs. State Minimum Wages
Employers must pay the higher minimum wage if both federal and state laws are applicable. The workers will receive the highest possible wage.
Notable State Updates
- California Raised its minimum wage from $15.50 to $16.00 an hour by 2023. The increase is scheduled to take place on January 1, 2024.
- Florida: Increases its minimum wage from $12.00 an hour to $15 per hour by 2026.
- Maryland: Maryland is scheduled to raise its minimum wage to $15 per hour from $13.25 on January 1, 2024.
- Nevada: plans to increase its minimum wage to $12.00 an hour from July 1, 2024.
History of Minimum Wage
Australia and New Zealand were the first countries to introduce minimum wage laws in order to increase wages for workers without any special skills. Most developed countries, as well as several emerging economies, have minimum wage laws.
Defining Minimum Wage
Minimum wage is the minimum amount that employers are legally allowed to pay employees per hour.
Employers can’t pay less than minimum wage, but they can pay more. Independent contractors are not subject to minimum wage laws. It is therefore important to correctly classify employees.
The importance of following minimum wage laws
Businesses, particularly those that operate in multiple jurisdictions, must adhere to the minimum wage laws.
Employers are required to pay their employees at least the average minimum wage for the number of hours they work.
Minimum wage rates for U.S. workers under the age of 18 are generally the same as the federal minimum wage rate of $7.25 an hour. However, state laws may impose higher rates.
To ensure that their employees are paid fairly, employers must adhere to both federal and state wage law. Recent increases in the state minimum wage reflect ongoing efforts to improve worker’s earnings and economic stability.
FAQs
What is the federal minimum wages for workers under age 18?
All workers under 18 are entitled to the federal minimum wage of $7.25 an hour.
Can states set minimum wages?
Yes, the state minimum wage can be higher than the federal minimum.
What is the minimum wage for each state in the U.S.
Washington D.C. pays the highest minimum wage in the country at $17.00 an hour.
Do there exist states that have a minimum wage lower than the federal rate of pay?
Federal regulations prevent states from paying less than the federal minimum wage.
How often does the minimum wage change in each state?
The state minimum wage can be adjusted annually or periodically depending on the economic and legislative conditions.