Understanding Minimum Wage

Minimum wage law sets the lowest possible rate at which employers can hire employees at an hourly, daily, or monthly rate. It also sets the lowest possible rate at which employees can sell their labor to an employer.

There is much controversy and debate among economists as to the benefits of minimum wage laws. While some argue that minimum wage requirements help the economy, others contend that such laws cause unemployment, tend towards inflation, and do little for employment statistics.

Regardless of its economic effects, minimum wage is an inescapable legal requirement. Minimum wage legislation was first introduced in the United States in 1938, and we are currently under the standards explained in the Fair Minimum Wage Act of 2007. Signed into law on May 25, 2007, it sets the national minimum wage at $6.55 per hour (as of July 24, 2008).

Many states have passed their own minimum wage laws that are higher than the federally mandated minimum wage. In Washington and Oregon, minimum wage is $8.55 and $8.40, respectively. Texas abides by the federally mandated minimum wage of $6.55, but that rate will increase, effective July 24, 2009, to $7.25 per hour.

Contact Us

If you have been paid less than minimum wage, or feel that there is a problem with compensation from your employer, contact the experienced Austin wage lawyers of Melton & Kumler, LLP at 512-330-0017. We can provide advice and legal assistance for all of your employment law issues.