Ok, so yesterday we talked about what interview questions you should consider asking your potential contractors/employees. Now, imagine you have hired them and you need to determine their pay rate, overtime pay, and breaks…and all of this talk is giving you a headache! No worries, I am going to make it simple for you today – AND – help you and your Company to stay out of hot water!
As of May 31, 2012, minimum wage per federal law is $7.25 per hour. However, each state has a specific minimum wage requirement and whichever is higher (state or federal minimum wage) will apply. For example, since minimum wage per Illionois state law is $8.25/hr, that is what is required by law if you are doing business in Illionois and paying labor. The higher of the two (federal or state minimums) apply. Click here to find out what your minimum wage is in your state.
Fun Fact – did you know that Washington State has the highest minimum wage of any state (at this date) with $9.04/per hour? So, that means that even though federal minimum wage is $7.25, if you are employing labor in Washington State you must pay them at least $9.04/hour.
According to the United States Department of Labor: “Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. (Most employees or contractors you have employed in the wedding industry are most likely non-exempt, so the FLSA standards will apply – however please do check with an attorney if you have any questions as to whether they are non-exempt or exempt). The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days. Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee’s representative). The FLSA does not require extra pay for weekend or night work or double time pay.”
Most states don’t have any minimum requirements for breaks and meal periods; it is up to the employer to determine that agreement with the contractor/employee. However, a number of states do have minimum requirements, so if you reside in one of these states you’ll want to make sure you are providing a break period (depending on the state it will be paid or unpaid): http://www.dol.gov/whd/state/rest.htm The same goes for meal periods – http://www.dol.gov/whd/state/meal.htm
If you’d like to consult on any Wage & Hour related information, or any Human Resources related information for that matter, I would love to chat with you! Please contact me at email@example.com to set up a complimentary consultation so we can discuss your needs.
And, be sure to check out The People Plan, easy-peasy human resources tools for your business!