![]() ![]() Then they can remain compliant with the law and pay their employees fairly. It's worthwhile for small businesses to stay up-to-date with changes in minimum wage laws at all levels of government. What if Small Businesses Don't Comply with Minimum Wage Laws? You can find an exhaustive list of the types of employees who aren't entitled to the federal minimum wage at the Department of Labor's Fair Labor Standards Act Advisor website. Newspaper employees of limited circulation newspapers.Executive, administrative and professional workers.Employees not covered include the following, but are not limited to: Besides, the federal minimum wage doesn't apply to employees if the FLSA doesn't cover them. Generally, businesses are exempt from paying the federal minimum wage if they meet the compliance criteria relating to revenues or interstate commerce. These higher standards at the municipal level can be attributed to local initiatives to pay what is known as a "living wage," which refers to the lowest hourly earnings one must be paid to maintain a reasonable standard of living in a given locale.Īre There Exceptions to the Minimum Wage? In California, for example, the current state minimum wage is $10.40, but in San Francisco, it is $14.00. These laws may differ, and in some cases, may be considerably higher than the state mandate. Small businesses should additionally check the website of their city government for any applicable local minimum wage laws. This fact, of course, doesn't exempt qualifying businesses in Mississippi from paying a minimum wage they must still meet the federal standards. As you can see, state laws vary considerably, from $12.50 in Washington, D.C to no minimum hourly standard in Mississippi. The DOL's Minimum Wage Laws in the States website is the best resource for finding out whether your state has a minimum law, and if so, what it is. Where Can I Find My State's or Municipality's Minimum Wage? Consequently, this means that paying the minimum wage is an obligation for a broad swath of businesses of different sizes and in various industries. Or they could be individuals doing any form of business that the Department of Labor (DOL) defines as "interstate commerce." This category includes everyone from people who produce products that get delivered out of state to those who make phone calls to individuals in other states. Which Businesses Must Pay the Minimum Wage?īusinesses must abide by the FLSA and pay the federal minimum wage if they are enterprises consisting of two or more employees and making $500,000 or more in annual sales. Where an employee is subject to both federal and state minimum compensation rates, he or she is entitled to the higher of the two wage minimums. Many states and even certain municipalities have established their specific minimum wage laws. Only employees are entitled to the minimum wage established under the FLSA not independent contractors. At the federal level, the minimum hourly rate for non-exempt employees covered by the Fair Labor Standards Act (FLSA) has remained at $7.25 since 2009. Minimum wage refers to the lowest hourly wage an employer can pay an employee, as set forth by the law to protect workers from unduly low compensation. Read on to learn what minimum wage means and how to remain compliant at the federal, state and municipal level. The consumer price index referenced for annual adjustments starting January 1, 2021.Paying your small business employees fairly begins with gaining a good understanding of the minimum wage laws.The $15 minimum wage rate started on July 1, 2020.Santa Rosa's ordinance has two distinctions from state law: How is the Santa Rosa ordinance different than California or federal minimum wage? Time spent in the City solely for the purpose of traveling through is exempt. Santa Rosa's minimum wage applies to employees who work at least two (2) hours per week within the Santa Rosa city limits regardless of where the employer is based. What if an employee only spends part of their work in Santa Rosa? On January 1 of each subsequent, the minimum wage will increased a the rate of the prior year plus the Bay Area CPI-W Starting January 1, 2021, the minimum wage will be increased to $15.20 for all businesses in Santa Rosa, regardless of size. On Jlarge business are required to pay employees $15 per hour and small businesses $14 per hour. ![]() When will Santa Rosa's minimum wage be implemented? ![]()
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