MINIMUM WAGE REQUIREMENTS
Federal Minimum Wage Requirements The federal minimum wage to be paid by covered employers is $7.25 an hour. These employers include businesses that produce or handle goods for interstate commerce; businesses with annual dollar volume of business of $500,000 or more; and certain other businesses, including hospitals and nursing homes, private and public schools, and federal, state and local government agencies. Minnesota Minimum Wage Requirements Minimum wage applies only to “non-exempt” employees. “Non-exempt” employees are those employees who do not fall within one of the law’s narrow “exempt” categories (e.g. executives, professionals, certain limited administrative employees, outside sales employees, etc. discussed at the end of this section). In practical terms, “non-exempt” is the default classification that applies to the majority of employees. All “non-exempt” employees must receive no less than the applicable minimum wage for each hour worked, keep a written record of all time worked, and receive overtime pay (time and one half) for all hours worked over the applicable number (40 hours under federal wage law; 48 hours under Minnesota wage law) in a workweek (the company’s designated 7-day work period). When both the federal and state wage laws apply and their minimum wages differ, an employer must pay its non-exempt employees the higher applicable minimum wage for each regular hour worked. The current large employer minimum wage, as of January 1, 2024, is $10.89 for 2024. Other state minimum wages, including the small employer, youth and training wages, as well as the summer work travel exchange visitor program wages is $8.85 for 2024. These state minimum wage rates will not apply to work performed in the cities of Minneapolis and St. Paul, which have higher minimum wage rates. Minnesota’s minimum wage laws: • There are different minimum wage rates, including the large-employer wage and the small-employer wage. There is also a 90-day training wage for workers 18 and 19 years old and the youth wage for workers 17 years old or younger, both of which are the same as the small-employer wage. • Large employers are companies with annual gross revenues of $500,000 or more and small employers make less than $500,000. Neither distinction includes the number of workers they employ. • The training wage may be paid to employees under the age of 20 for the first 90 consecutive days of employment while the youth wage may be paid to employees younger than 18. Prohibition of Displacement: The new law prohibits employers from displacing other employees to take advantage of the lower minimum wage rates for employees under the age of 18, employees under the age of 20, or employees who qualify for the summer work travel exception. This prohibition includes total displacement of employees as well as partial displacement through a reduction in hours, wages, or employment benefits.
146
Made with FlippingBook - Online Brochure Maker