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Low-wage workers making more dough
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| Little Caesars employee Annie Mosley, 26, cuts a freshly made pepperoni pizza Wednesday afternoon. Mosley said that the increased state minimum wage, to $7.21 per hour, will 'mean more money for my kids.' |
State minimum wage increases to $7.21 pe hour
By Michael Mitseff
Florida’s minimum wage employees who were earning $6.79 per hour at the end of 2008, are now earning $7.21 per hour as of Jan. 1, thanks to a constitutional amendment Florida voters approved in 2004 that created a statewide minimum wage increase.
The federal minimum wage under the Fair Labor Standards Act for covered nonexempt employees is currently $6.55 per hour, increasing to $7.25 on July 24, 2009.
On July 24, 2007, the federal minimum wage was $5.85 per hour and the following July 24 was raised again to $6.55 per hour.
In addition to Florida, many other states have enacted minimum wage laws, but where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
Five states have no minimum wage law and therefore are covered under the federal minimum wage law. Six states have minimum wage laws under the federal minimum wage.
The 42 cents per hour increase may not seem like much, but to employees working several jobs to make ends meet, it’s money in the bank.
“I’ll get more money for gas and clothes and school supplies,” said fast-food employee and Columbia High School student Melissa Pfeiffer, 17, adding that the extra $15 a week will really help out.
Numerous minimum-wage exceptions may apply to workers with disabilities, full-time students, employees under 20 in their first 90 consecutive calendar days of employment, employees who work for tips and student learners, according to the U.S. Department of Labor .
“It’ll mean more money for my four kids,” said a Lake City Little Caesars employee, Annie Mosley, 25, adding that she works about 35 hours a week.
“It’ll help me pay off my bills faster,” said Rose Burke, 26, adding that she works about 22 hours for Little Caesars and does paint and tile work on Saturdays.
From an employer’s perspective, an increase in the minimum wage means an increase in labor costs, which in turn may mean fewer employee hours.
“I think the increase in the minimum wage is probably something that needs to be done,” said Jared Cady, Little Caesars’ owner. But he added that from an employer’s point of view, it increases the cost of labor at a time when the economy isn’t doing as well it should be doing.
“I can’t really raise prices in today’s economic environment to make up for the increase, but what I can do is make sure that my employees are efficient and productive,” Cady said.
More efficient equipment is one area where Cady said he can save on some labor costs, also.
Employees who receive tips as part of their job, labor under different minimum wage rules.
An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, according to the USDOL.
If the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips, and the 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.
Florida tipped employees, as of Jan. 1, will receive a wage of $4.19 per hour, which is calculated by taking the $7.21 minimum wage and subtracting a $3.02 hourly “tip credit.”
Some states have minimum wage laws specific to tipped employees, but when an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law, and whichever provides the greater benefits.
A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer, as long as their work does not displace other workers.
After 90 consecutive days of employment or when the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 per hour effective July 24, 2009 — or in Florida, $7.21 beginning now.
The federal minimum wage under the Fair Labor Standards Act for covered nonexempt employees is currently $6.55 per hour, increasing to $7.25 on July 24, 2009.
On July 24, 2007, the federal minimum wage was $5.85 per hour and the following July 24 was raised again to $6.55 per hour.
In addition to Florida, many other states have enacted minimum wage laws, but where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
Five states have no minimum wage law and therefore are covered under the federal minimum wage law. Six states have minimum wage laws under the federal minimum wage.
The 42 cents per hour increase may not seem like much, but to employees working several jobs to make ends meet, it’s money in the bank.
“I’ll get more money for gas and clothes and school supplies,” said fast-food employee and Columbia High School student Melissa Pfeiffer, 17, adding that the extra $15 a week will really help out.
Numerous minimum-wage exceptions may apply to workers with disabilities, full-time students, employees under 20 in their first 90 consecutive calendar days of employment, employees who work for tips and student learners, according to the U.S. Department of Labor .
“It’ll mean more money for my four kids,” said a Lake City Little Caesars employee, Annie Mosley, 25, adding that she works about 35 hours a week.
“It’ll help me pay off my bills faster,” said Rose Burke, 26, adding that she works about 22 hours for Little Caesars and does paint and tile work on Saturdays.
From an employer’s perspective, an increase in the minimum wage means an increase in labor costs, which in turn may mean fewer employee hours.
“I think the increase in the minimum wage is probably something that needs to be done,” said Jared Cady, Little Caesars’ owner. But he added that from an employer’s point of view, it increases the cost of labor at a time when the economy isn’t doing as well it should be doing.
“I can’t really raise prices in today’s economic environment to make up for the increase, but what I can do is make sure that my employees are efficient and productive,” Cady said.
More efficient equipment is one area where Cady said he can save on some labor costs, also.
Employees who receive tips as part of their job, labor under different minimum wage rules.
An employer may pay a tipped employee not less than $2.13 an hour in direct wages if that amount plus the tips received equal at least the federal minimum wage, according to the USDOL.
If the employee retains all tips and the employee customarily and regularly receives more than $30 a month in tips, and the 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.
Florida tipped employees, as of Jan. 1, will receive a wage of $4.19 per hour, which is calculated by taking the $7.21 minimum wage and subtracting a $3.02 hourly “tip credit.”
Some states have minimum wage laws specific to tipped employees, but when an employee is subject to both the federal and state wage laws, the employee is entitled to the provisions of each law, and whichever provides the greater benefits.
A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment with an employer, as long as their work does not displace other workers.
After 90 consecutive days of employment or when the employee reaches 20 years of age, whichever comes first, the employee must receive a minimum wage of $7.25 per hour effective July 24, 2009 — or in Florida, $7.21 beginning now.
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