Federal Wage Floor

Labor supports the provision but wants to introduce a wage floor to ensure that anyone for example reduced to 60 per cent of their normal hours is not earning less than if they were receiving.

Federal wage floor. The fair labor standards act flsa determines the minimum wage for employees in private and public sectors in both federal and state governments. Federal minimum wage for contractors pdf. Minimum wage the federal minimum wage is 7 25 per hour for workers covered by the flsa. The minimum wage rate is the lowest hourly pay that can be awarded to workers also known as a pay floor.

The fair labor standards act sets the minimum wage from coast to coast lays out the rules for overtime pay. The system s goal is to make sure that federal trade craft and laboring employees within a local wage area who perform the same duties receive the same rate of pay. The union premium the amount by which union wages exceed non union wages is also greater in the private sector for less educated and lower skilled workers. That wage is 7 25 per hour for covered nonexempt employees.

The wage floor is largely due to the high rate of unionization in the public sector. These standards are enforced by the department s wage and hour division. The federal wage system fws is a uniform pay setting system that covers federal appropriated fund and nonappropriated fund blue collar employees who are paid by the hour. The federal minimum wage for covered nonexempt employees is 7 25 per hour.

Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws the employee is entitled to the higher of the two minimum wages. Raising the wage floor is a critical strategy for improving wages and represents one component of a comprehensive compensation strategy necessary to provide a skilled and stable early care and education workforce. Federal law already allows states and cities to enact their own higher minimum wages to reflect local economic conditions including costs of living.

American samoa federal minimum wage poster pdf the commonwealth of the northern mariana islands poster pdf notice to workers with disabilities special minimum wage pdf spanish version. Department of labor enforces the fair labor standards act flsa which sets basic minimum wage and overtime pay standards. State and local governments under the fair labor standards act pdf worker rights under executive order 13658. The federal wage floor.