The federal minimum wage hasn’t changed in years. It is currently set at just $7.25 an hour. There are those who call this a poverty wage, noting that it pays someone less annually than the poverty threshold that has been set by the Department of Health and Human Services. In other words, the minimum wage isn’t actually enough to live on for most employees.
This is especially true in California, which has a notoriously high standard of living. If you get a job and your employer tells you that they’re going to pay you $7.25 an hour, are they actually allowed to do so?
The California minimum wage
No, your employer cannot pay you $7.25 an hour, even though this is in line with the federal guidelines. The thing to remember is that the minimum wage in California is $16.50 an hour. This is more than double what someone would make at the federal level.
When there is a conflict between the federal minimum wage and the state minimum wage, employees have to be paid whichever number is higher. There are certainly some states that don’t have an official minimum wage at all. In these locations, employers can default to the federal minimum if they would like. But since the California wage is set so much higher, employers are bound to follow that in the majority of cases—and would be violating the law to try to pay a mere $7.25.
Do you believe you haven’t been paid fairly by your employer? Be sure you know what legal steps to take.