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Minimum Wage Explained

Minimum Wage Explained

What is Minimum Wage
Minimum wage laws play a vital role in protecting individuals from exploitation in the work place. When the federal government specifies the national minimum wage, all employees working in the United States must be compensated this amount of money for each hour that they work. Independent minimum wages can also be established by each state. 

Minimum Wage History
Minimum wage history was initiated numerous decades ago, when the United States government sought to protect marginalized individuals, such as women, from exploitation. Wage determination laws were put in place in order to help ensure that all employees receive a fair and reasonable income for the work that they perform. 

Minimum Wage Laws
Since the establishment of the first minimum wage laws, most countries have created wage and hour regulations, which employers are required to adhere to. Minimum wage laws and regulations vary a great deal from one country to another. Every country has created different wage and hour guidelines for employers to follow. 

National Minimum Wage
A national minimum wage is set by a government to regulate minimum wages within that country. In the United States, the federal minimum wage determines the absolute minimum hourly income an employer can provide his/her employees. Though states are able to create their own minimum wages, these can not be lower than the specified federal minimum wage. 

Minimum Wage 2008 vs. Minimum Wage 2009

When considering the minimum wage 2009 vs. the previous minimum wage 2008, individuals will notice a significant increase in the federal minimum wage. This increase was due to legislation that initiated an incremental rise in the national minimum wage standard. The associated Act increased the minimum wage over a three year period. 
Wages vs. Salaries
Wages and salaries are both types of payment methods provided to employees by employers. These payment methods vary significantly, and they each offer employees different benefits and disadvantages. Wages and salaries do not necessarily satisfy the living wage of a specific location. It is important for an individual to understand the various features of each of these payment plans when considering minimum wage standards. 

Wages Calculator
Wages calculators can be used for a number of different purposes. For example, a wage calculator can help an individual to determine his/her annual income, by quickly completing a mathematical equation using some basic information. In addition, these calculators are frequently used to determine the cost of living in specified locations. 

Wage Gap
Despite the establishment of legislation the prohibits discrimination and wage discrepancies in the work place, there continues to be a significant wage gap in the United States. Wage rates vary significantly, based upon an individuals sex, race, and ethnicity. If this wage gap was closed, the poverty rate would most likely improve notably. 

Prevailing Wage
Prevailing wage rates are the median wages that are earned by individuals employed within certain fields within specified locations. The prevailing wage rates for a variety of different positions are usually determined for each county. Reviewing this type of information can help an individual to determine where his/her profession receives the highest wages. 

Minimum Wages Act
In the United States, the minimum wage act that regulates the minimum wage standards is known as the Federal Labor Standards Act. This legislation also specifies who is eligible for minimum wage rates. Many countries throughout the world have adopted minimum wage acts, in order to ensure that employees are compensated fairly. 

Minimum Wage 2009 vs. Minimum Wage 2010

In general, when comparing minimum wage 2009 standards and minimum wage 2010 standards, on both a federal level and a state level, there was no change. A few states, including Connecticut, did raise their state minimum wage rates. However, most states maintained the rates that were used in 2009. 

Wage Slips
Wage slips are important documents that detail an individual’s earnings and any deductions that are made from his/her income. These records are important in determining whether an employer is adhering to labor laws, such as minimum wage regulations. 

How Much is Minimum Wage
The established minimum wage standards vary substantially from one location to another. For example, the minimum wage in the United States is notably less than the minimum wage in Australia. In addition, minimum wage rates usually range depending upon the age of the employee. In most locations, there is a youth minimum wage rate, the is given to minors or individuals who have not yet reached a specified age.