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Minimum Wages Act

Minimum Wages Act

The Federal Labor Standards Act is the minimum wages Act that governs the use of minimum wage standards in the United States. This minimum wages act specifies the national minimum wage standard for the country. Recent amendments to the Federal Labor Standards Act have increased the federal minimum wage to $7.25 for every hour that an employee works.

This legislation allows each state to create its own, independent minimum wage, if it chooses to set a minimum wage higher than the standard established by the FLSA. However, a state cannot establish a minimum wage that is below that specified in the FLSA. In addition to determining the federal minimum wage, the FLSA also outlines who qualifies to receive minimum wage and prohibits employers from practicing discrimination regarding wages.

The Federal Labor Standards Act specifies which employees are entitled to minimum wage rates. Not all employees must be provided with the designated $7.25 per hour. In a small firm or company earns under $500,000 worth of annual revenue, the employees working for this firm may not receive minimum wage. However, if he/she took produced certain goods or took part in interstate commerce, he/she may still be eligible to receive minimum wage.

This minimum wages act establishes an independent minimum wage for individuals who have not yet reached 20 years of age. These individuals cannot be paid under $4.25 for each hour that they work. The Act also makes gender discrimination illegal and states that male employees and female employees must be paid the same wages if they are performing the same duties and working the same hours.