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State Minimum Wage Laws U S. Department of Labor

minimum wage in usa

The story has been updated to reflect some of the anticipated cuts at individual employers. The Wage and Hour Division tries to ensure that the information on this page is accurate, but individuals should consult the relevant state labor office for official information. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act. This website is using a security service to protect itself from online attacks.

In addition, some counties and cities within states may implement a higher minimum wage than the rest of their state. Sometimes this higher wage applies only to businesses that contract with the local government, while in other cases the higher minimum applies to all work. The charity said workers in the capital would need more than £3,000 extra to bring earnings into line with the London living wage. The difference could pay for almost a year’s worth of food, or 23 weeks of housing and energy costs. Chipotle’s CFO told Yahoo Finance that the company will be forced to increase their prices to comply with the minimum wage increase. Fast food workers are losing their jobs in California as more restaurant chains prepare to meet a new $20 minimum wage set to go into effect next week.

Cost of Living

The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate. The minimum wage will be adjusted annually based upon a set formula. minimum wages The law was supported by the trade association representing fast food franchise owners. But since it passed, many franchise owners have bemoaned the impact the law is having on them, especially during California’s slowing economy.

  • Under the default policy based on the Raise the Wage Act of 2023, the increase in the regular minimum wage is fully implemented in July 2029.
  • An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law.
  • Effective July 1, 2024, there will be a uniform minimum wage of $12.00 per hour for all employees.
  • Georgia and Wyoming have the lowest state-mandated minimum wage, at $5.15.
  • The federal minimum wage was established in the Fair Labor Standards Act in 1938, which set it at $0.25 an hour.

The chief executive of the Cheesecake Factory isn’t sweating the wage hike, either. As a full-service restaurant chain, the company won’t be obligated to pay its California workers $20 an hour. But CEO Matthew Clark said on the company’s earnings call in February that the chain’s tipped positions already make much more, and he believes that’s the case for fast-food workers, too.

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minimum wage in usa

“I think we are going to see spillover effects within food service, but beyond that, we should expect to see spillover effects to other industries that are competing for this talent,” Daniel Zhao, lead economist for career site Glassdoor, told CNBC. Combined with benefits, Starbucks’ current comprehensive compensation package for all U.S. hourly partners totals an average of $30 per hour. Pizza Hut announced cuts to more than 1,200 delivery jobs in December, previous reporting by USA TODAY shows. Some Pizza Hut franchises in California also filed notices with the state saying they were discontinuing their delivery services entirely, according to Fox Business. An earlier version of this story attributed the combined number of eliminated positions to a single company.

Graphic showing yearly increases by year by state

Excalibur Pizza, a franchisee of Round Table Pizza, has plans to cut 73 driver jobs in April, which amounts to 21% of its workforce, the company confirmed with USA TODAY Wednesday. 1 The overtime premium rate is one and one-half times the employee’s regular rate, unless otherwise specified. Applicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico. Premium pay is required after 45 hours a week in seasonal amusements or recreational establishments. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.