The Youth Minimum Wage
EducationThe Youth Minimum Wage
Employers can choose a youth under 20 years old for a job and give them an opportunity to prove their usefulness before paying them regular wages. New work takes time to get a handle on.
In 1996, the U. S. Congress amended the Fair Labor Standards Act in Section 6 to give employers more choice for hiring young Americans.
A Low Start
The youth minimum wage is made to measure for a young American under age 20 years. The first period of progress is the time a worker hits their stride. For the first 90 calendar days at a new job, the youth can earn the $4.25 an hour.
After the 90 days are over, the lowest wage an employer can choose for the raised pay is the regular minimum wage. In July, 2009, the regular wage was set at $7.25 an hour.
Exactly 90 Days
The 90 days limit does not grow larger or end short. Ninety calendar days is just right. Each calendar day that goes by counts. Even if the youth does not work, the calendar day is lost from the 90 day total.
The 90 days begins the first day the youth works for the employer. The work clock does not begin to tick off days until work begins. The day the youth is hired does not start the clock.
Breaks in employment do not stop the work clock. Days tick off until the 90 day are up even when a youth in a summer job ends work and goes back to school.
The Golden Age
The low wage continues until the day the youth turns 20. Then, the worker gets paid at the full minimum wage written in the Fair Labor Standards Act for the work.
Joining The Ranks
A young American can get the youth minimum wage more than once. The wage is paid for joining the ranks. One, two, or even three employers. A youth can go to work for two employers at the same time and earn the youth minimum wage at both places of work. Or, they can work for one employer, and then after finishing their work, move on to another employer, and earn the youth minimum wage until turning age 20.
No Moving On To A Cheaper Worker
Employers can not use the law to close off opportunity. A choice to replace a regular worker with a youth to pay the lower wage is a violation of the Fair Labor Standards Act. Violators can get fined up to $10,000, or if the employer has already been once convicted for a FLSA violation, get sentenced to up to 6 months in prison. Or, the Department of Labor can give both a fine and an imprisonment sentence.
Using all youth workers until their 90 days are up and replacing them with more youth workers and paying the youth minimum wage to all employees is also a violation.
Employers Covered by The Law
Only employers covered by the Fair Labor Standards Act have to pay at least the youth minimum wage. Business owners making less than $500,000 gross are not covered. The law also rules out a list of occupations, including administrative assistants, fishermen and babysitters.
The top minimum wage in the business location is the lowest wage an employer can pay. Higher youth minimums in the state, county, city or town take the place of the federal youth minimum wage. Minimum wages that rule out youth minimums also take the federal wage's place.
Youth Gains
Enterprising plans for work are supported at a young age. The young American comes into a job at a lower wage and finds their direction for a career before moving on to the work they will do during their career in their older years.
Sources:
The Fair Labor Standards Act (1938).
U. S. Department of Labor, Wage and Hour Division, Fact Sheet No. 32: Youth Minimum Wage--Fair Labor Standards Act (July 2008).