1. Federal-Fair Labor Standards Act (FLSA)
The Act applies to almost every private businesses and government/public institutions.In general, it requires employers to pay employees who are covered by this Act a minimum wage for the hours of labor. The hours of labor is defined as actual working hours plus the time referred as “engaged to wait.”
The Act does not limit either the number of hours in a day or the number of days in a week that an employer may require an employee to work, as long as the employee is at least 16 years old. Similarly, the Act does not limit the number of hours of overtime that may be scheduled. However, the Act requires employers to pay covered employees not less than one and one half times their regular rates of pay for all hours worked in excess of 40 in a workweek, unless the employees are otherwise exempt.
|Federal Minimum Wage||$5.85||(From July 24, 2007)|
|$6.55||(From July 24, 2008)|
|$7.25||(From July 24, 2009)|
An employer of a tipped employee is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage, the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips. If an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions which provide the greater benefits.
2. California Minimum Wage
|CA Minimum Wage||$7.50||(From January 1, 2007)|
|$8.00||(From January 1, 2008)|
Please be informed and make no mistake that when there’s difference between Federal Minimum Wage and State Minimum Wage, employees are given the right to receive the higher rate of pay.
Hours and Days of Work
- Overtime regulation applies to employees over eighteen years old. It may apply to some sixteen and seventeen years of employees.
- Employees are entitled to get paid one-half times their regular rates for the hours worked over eight hours per day.
- Employees are entitled to get paid one-half times their regular rates for the hours worked over forty hours per week.
- Employer must pay two times employees’ regulate rate for the hours worked over twelve hours per day.
- Exception: Employers who have set the working hours as ‘Ten Hours/Day, Four Days Work’ are not required to pay overtime for the hours over eight working hours per day.