Monday, January 10, 2011

Federal and State Minimum Wage Posters

We receive many calls from businesses who inquire about the differences between the Federal Minimum Wage and the State Minimum Wage. Most callers question why, in some cases, they are different. One example is a caller today(January 10, 2011) asked why his Federal Labor Law poster said the minimum wage was $7.25/hour and his Arizona State Labor Law poster said the minimum wage was $7.35/hour, a difference of $0.10.

To answer this question, we first explained that BOTH minimum wage postings were correct. Each state has the ability to establish its own minimum wage. The state minimum wage can be higher or lower than the Federal Minimum Wage. However, employers and businesses are required to pay the higher amount, whichever that may be. In the example above, the employer should be paying a minimum wage of $7.35/hour. Also of note is that the employer is still required to post BOTH minimum wage postings.

Notes: This blog posting is not intended to be a comprehensive discussion on minimum wage. The above statements are of a general nature and there are certain exceptions that may be applicable. Not all states have a minimum wage law or a required minimum wage posting. In states where there is not a state specific requirement, then employers should follow and post the Federal Minimum Wage.

To obtain the most recent required posters for your workplace, please visit this link:
State and Federal Labor Law Posters

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