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NewslettersThe minimum just got a little higher
Submitted by Meghann Ackerman on Thu, 2008-07-24 12:11.
As of today the national and South Carolina minimum wage increased to $6.55 per hour from $5.85 per hour.
Given the economy, though, does that make a difference? I'd love to talk with someone working a minimum wage job, but, I have to admit it's hard to get folks to agree to be videotaped talking about money.
If, however, you are willing, drop me a line. My e-mail is
and my phone number is 986-5537.
Either way, be on the look-out for a video about making minimum wage in Beaufort County.
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Minimum wage may have gone up but not for the tipped employee-they are still making $2.13 an hour!This has been the wage for over 15 years-these hard working folks deserve a raise too!
but the law states that a tipped employees pay is $2.13/hour but, if they do not make enough in tips to bring that to the minimum wage, then the employer must make up the difference.
If you're a tipped employee & not making the minimum, to include your tips, you should report your employer.
This is just FYI. Not saying it's right.
but the law states that a tipped employees pay is $2.13/hour but, if they do not make enough in tips to bring that to the minimum wage, then the employer must make up the difference.
If you're a tipped employee & not making the minimum, to include your tips, you should report your employer.
This is just FYI. Not saying it's right.
So, the tipped employees got a raise too - bringing their hourly take-home before deductions to the new minimum raise standard. These workers probably don't know enough about the system to report their employers if the law is not followed.
If you as a server are not making up the difference from 2.13 an hour to 6.55 and hour you shouldn't be serving. That's 3.075 in tips an hour. I really wouldn't call it a raise. So if you work an 8 hour shift and do not bring in 24.60 for that shift, you have not made minimum wage. But the employer is going to work that over a regular work week, he is not going to make up the difference each individual day, at least I don't think so.
If you as a server are not making up the difference from 2.13 an hour to 6.55 and hour you shouldn't be serving. That's 3.075 in tips an hour. I really wouldn't call it a raise. So if you work an 8 hour shift and do not bring in 24.60 for that shift, you have not made minimum wage. But the employer is going to work that over a regular work week, he is not going to make up the difference each individual day, at least I don't think so.
You are probably correct in that the employer will work that daily minimum wage shortage into a regular work week. Actually I'd say that would not be legal. What happens if the hourly employee is asked to pick up more hours than the usual eight - does he get time and a half? It can't be one way for some things and other ways for other things to just satisfy the employer.
Hourly employees should be using the internet to learn about our US wage laws.
The current federal regulations state that any employee who works over 40 hours in a week will be paid time and a half for the overage. Eight-hour days or 12 hour days do not matter. If the employer takes the total amount earned at 2.13 per hour for one week, adds the total amount of tips received for that week, and divides the total by the number of hours worked, he will find out if the server made at least the federal minimum wage per hour. If the server did not, the employer is required by federal law to make up the difference. On a weekly, not daily, basis. If there are servers out there who are still not making minimum wage because their employers are not doing this, the employers should be reported to the US Dept of Labor.
The current federal regulations state that any employee who works over 40 hours in a week will be paid time and a half for the overage. Eight-hour days or 12 hour days do not matter. If the employer takes the total amount earned at 2.13 per hour for one week, adds the total amount of tips received for that week, and divides the total by the number of hours worked, he will find out if the server made at least the federal minimum wage per hour. If the server did not, the employer is required by federal law to make up the difference. On a weekly, not daily, basis. If there are servers out there who are still not making minimum wage because their employers are not doing this, the employers should be reported to the US Dept of Labor.
Thanks, that explains the overtime hours, but how does the employer actually know the amount of the tips received by the server? I heard today that some restaurants are adding the tip on to the bill.
The whole tipping system seems full of holes.
It's rather an honor system. The employee is supposed to report their tips. Some employers require that servers total their tips, then split them evenly, which I always believed was wrong. It defeats the purpose of a tip. Actually, the whole notion of a lower minimum wage for tipped employees sort of defeats the purpose. Not only that, but I believe it causes the level of customer service to drop, as the servers feel they deserve a tip, rather than that they must earn it.
There is room for misreporting by employees and employers, but it's not really as full of holes as you might think.
Actually it takes a CPA to figure who should receive overtime. Some are exempted from overtime in certain occupations.
But the new law says that businesses with less than 500,000.00 in gross receipts are exempt. That may cover small restaurants and maybe even some fast food places. The other factor is that employees that earn less than 23,665.00 per year, or 455.00 per week are not covered. That means that many restaurant workers will not be covered under overtime. Since some workers work in more than one restaurant, their wages cannot be added to qualify.
As for weekends, some employees that normally work week days may be eligible if they work on a weekend. However, employees whose shift cover the weekend will not be eligible or overtime due to it being a weekend.
I work in payroll and have never heard of this new law dealing with overtime. The FLSA states that employees who work in excess of 40 hrs per week will be paid time and a half. Maybe you are referring to the minimum wage portion of the law? Also, I have heard of salaried and workers in certain positions (executive, administrative, etc.) who are exempted from the overtime and minimum wage requirements, but nothing about those making less than a certain amount being exempt. Those who are exempted due to their profession must make at least a certain amount in order to qualify for the exemption. Are the rules different for fast food or small businesses?
I think I'll go online to the US DOL site and do some research cause this is the first I've heard of any of what you stated.
Actually I miss posted part of the info. Employees earning 23,665 per year or less ARE covered for overtime regs. The Law was enacted 2004 and they called it a new law.
As for exemptions in restaurants, the following link provides more info, but I did not follow the link to find out the details. Not that interested since I am not in the restaurant business. Got enough to deal with for the business I'm in. However, I am exempted from many laws because my gross receipts are less than 500,000.00 per year. I keep up with those! LOL
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_779/29CFR779.386.htm
Any person who works for tips should have no problem making the other $4.42/hr in tips. If he can't, then he's in the wrong business, and we won't last at his job. I once waited tables for a large national chain, and one of the first things I was told is that I better claim enough tips at the end of the day to at least cover minimum wage. The fact that someone works for tips is a risk that he takes when he takes the job. It really isn't that great a risk though if the person has half a personality. Instead of reporting the employer, what the employee needs to do is learn to be a better server and the tips will start flowing.
Giving a minimum wage employee a raise based solely upon raising the minimum wage accomplishes nothing. Nothing but adding more fuel to the inflationary fire. Minimum wage is designed to control the lowest amount that can be paid to an inexperienced, unskilled, and uneducated worker. Uneducated as in they have not yet or did not go far enough to qualify for higher paying work. A merit based raise given to a worker who learns to excel at their job is productive, but raising minimum wage is not. An employee's value can only be judged on how much and how well they produce, their value remains constant in relation to their level of effectiveness. When minimum wage is raised everything else will raise with it. The higher level worker will demand more money because the goods and services he or she buys will increase in price to cover the cost of the new minimum wage. The reality is that a ditch digger has a certain value, and so does a medical doctor, but those monetary values are vastly different. Changing the minimum will never close that gap, but education, hard work, and dedication can. When I first got a job as a child, minimum wage was 35 cents per hour, a postage stamp was 2 cents, a coke was a nickel, 25 cents would get you into a movie, gas was 18.9 per gallon, cigarettes were 20 cents a pack, and the nice house we were raised in cost my parents $4000.00. My 35 cents per hour then would buy as much or more than $6.55 will two months after the raise takes effect. All this sort of thing does is further devalue the US dollar! You can earn more of something that becomes worth less until eventually it is totally worthless!
The devaluation of the dollar was progressing quite well before the minimum wage was raised this time around. Canada as well as other countries have higher minimum wages than the U.S. and their currency has been doing better than the U.S. dollar.
The history of the minimum wage may be found at http://www.dol.gov/ESA/minwage/chart.htm, but I don't see 35 cents per hour. In 1939 it was raised to 30 cents and in 1945 it was increased to 40 cents.
When I first went to work in late 1958, I was not working in one of the job types that qualified for the Federal minimum wage listed on the site you linked. That would be the 1938 act, and I still was not qualified for a while after the 1961 act. Perhaps the wage I referred to was state mandated. I'll see if I can find out.
The devaluation of the dollar was progressing quite well before the minimum wage was raised this time around. Canada as well as other countries have higher minimum wages than the U.S. and their currency has been doing better than the U.S. dollar.
The history of the minimum wage may be found at http://www.dol.gov/ESA/minwage/chart.htm, but I don't see 35 cents per hour. In 1939 it was raised to 30 cents and in 1945 it was increased to 40 cents.
Although I began working, part-time while still in high school, I don't remember the hourly minimum wage rate, but I took home about $14.50 after working four hours on Friday evening and a 12 hour Saturday, also after paying a bit into Social Security. Later, in 1957 with four years of college I was making $50.00 weekly salary (with benefits), but the hourly wage employees under my supervision were making $.65 per hour. That doesn't match the web site you referred us to, but I was not handling payrolls then, and the employees told me they were only making .65 an hour.
If you are old enough to remember the minimum wage at .35 per hour you should be old enough, experienced enough, and understanding enough to realize that there are many senior citizens working minimum wage jobs, at least part-time, just to get by with the necessities of life. Some of these older people are retired from professional jobs, but are no longer able to work those jobs for many reasons.
Also, there are probably still many young wives and mothers working these minimum wage jobs to supplement the family income - it's easier to take time off and use telephone to home during work if they are not employed professionally. With salaried jobs usually go more responsibility.
Elida, maybe what is being suggested is that instead of people working for a survivable minimum wage, they should be placed on the welfare rolls and draw on the many social programs that are available to people who don't want to work or pay taxes. That way a decent minimum wage won't be such a burden to the business community.
TGS makes statements about the minimum wage that I agree with. The benefit of raising the minimum wage is short lived to the recipient and is one of many contributors to inflation.
When an employer pays more to each employee without also raising the productivity of the worker, then it is similar to the government saying there will be a minimum price on gasoline with scheduled increases similar to wages.
As an example, suppose the government establishes minimum prices on gas as it has on wages. So if we are paying a 3.00 minimum price on gas and the government has a scheduled 25 cents raise, then we all pay 3.25 for a gallon without getting more gas. This also happens with the minimum wage and productivity.
The government may have a temporary benefit by raising the wage. When all wages go up, then the taxes based on those wages also goes up and the treasury has more money. But even there, inflation will hurt the government because operating costs go up with no increase in productivity.
My view is that it is a scam promoted by liberals to make the wage earners believe the government is looking out for them. But it results in a spiraling loss of the dollar buying power due to inflation.
No one should have to earn a living on minimum wage. It is a beginner's wage and an employee's wage will increase with experience and training and promotions.