What is Minimum Wage?

What is minimum wage

? According to some, it isn't much. Not nearly enough to live on in the United States when you figure in the cost of living. This includes high rent or mortgage payments, the rising cost of gas, food, clothing, utilities, and other items needed to survive.

On May 25, 2007, President Bush signed a bill which amended the Fair Labor Standards Act (FLSA) to raise the federal minimum wage in the United States. The minimum wage will raise in three steps. On July 24, 2007, the minimum wage rose to $5.85 an hour, on July 24, 2008, minimum wage is to go up to $7.25, and on July 24, 2009, it is supposed to go up to 2009. These changes were needed years ago but at least it is happening and will help a little for some. With those wages, it still takes both the husband and wife working to even think about making a living and it still puts those people below the poverty line. It seems that the government likes it better that way.

There are many states which have their own minimum wage laws and the minimum wages will vary from state to state. If the state has a higher minimum wage requirement than the federal minimum wage is, the employee is entitled to the larger of the two. The cost of living in some states is higher than it is in others and this may be what makes the minimum wage laws different.

There is a minimum wage of $4.25 an hour which applies to young workers under the age of 20 during their first 90 days of employment. After the 90 probation period, or if the individual turns 20 before the 90 days is up, the individual is entitled to the new minimum wage of $5.85 which took effect on July 24, 2007, and future increases as they occur.

Another program which allows less than minimum wages be paid is to

workers with disabilities

, full time students, and student learners. These programs can apply to any age. These employees are entitled to at least 85% of the minimum wage, whatever it is at the time. If the student is at least 16 years of age and in vo-tech school, the employer can obtain a certificate from the Department of Labor which allows them to pay the student at least 75% of the minimum wage.

If the individual is an employee at a place in which they will receive tips, the employer is required to pay them a minimum wage of at least $2.13 and they get all of their tips. If they do not receive up to the minimum wage of $5.85 by totaling the tips and the $2.13 per hour, the employer has to make up the difference.