Minimum Wage

What does Minimum Wage refer to?

1.    Minimum wage refers to the lowest hourly, daily, or monthly wage that is awarded to an employee for their work.

2.    Minimum wage requirements are instituted by the Federal Government of the United States. That being said, each state may distribute their own minimum wage scale based on their particular labor market or their cost of living.
3.    An employer is obligated to pay all employees at least the federal minimum wage or if different, the minimum wage for the particular state in which their office is located.
4.    Failure to meet the minimum wage requirement will result in sanctions, fines, and the possible termination of a business. 

Minimum Wage Law

1.    Minimum wage law refers to the body of laws, which prohibit an employer from hiring workers for less than a given wage. Minimum wage law is administered through a series of legislation, the most recent of which delivered in the form of The Fair Minimum Wage Act of 2007. This piece of legislation instituted the current federal minimum wage law of the United States.
2.    The Fair Minimum Wage Act instituted three increases to the federal minimum wage over the course of two years. The current minimum wage is $7.25 per hour for all employees regardless of industry. This rate; however, is susceptible to change based on jurisdiction—some states may increase the minimum wage level based on the cost of living in the area. For example, Washington possesses the highest minimum wage in the United States at $8.55 per hour.
3.    The minimum wage rate applies to employers that conduct at least $5000,000 in business per year. This rate must also be adhered to by all small firms that are engaged in interstate commerce or the production of goods for commerce. Examples of such businesses include transportation or communications companies.
4.    Minimum wage law also applies to employees involved in government work.
5.    The variance of minimum wage laws (the difference of the amount in states) is associated with the differentiated costs of living throughout a country. For instance, the minimum wage in New Jersey or Massachusetts is higher than South Carolina or Louisiana. This difference is found in the costs of goods, services, and the overall market for the consumer market of these particular areas. 
6.    The differentiated levels of minimum wage level are developed as a product of supply and demand analysis.