Can salary be lower than minimum wage?

Can my employer reduce my salary? In general, your employer can reduce your salary for any lawful reason. There is no specific California labor law which prohibits an employer from reducing an employee’s compensation. However, your employer cannot reduce your salary to a rate below the minimum wage.

When can you be paid less than minimum wage?

Under federal law, if part of your compensation comes from tips, then your employer can pay you significantly less than the minimum wage, as long as your hourly wage plus the average amount that you earn from tips equals the minimum wage.

What is the difference between living wage and Minimum Wage?

What is the difference between the Minimum Wage and National Living Wage? The National Minimum Wage actually only applies to people above school leaving age but under 23. Anybody aged 23 or over now receives the National Living Wage under a system launched earlier this year.

Can apprenticeships pay less than minimum wage?

Although we have gone over the minimum wage available to an apprentice, there is no fixed rate. An employer must pay you the minimum, but some choose to pay more which will impact your wage.

What would happen if minimum wage laws were repealed?

Answer: If minimum wage laws were repealed, the vast majority of U.S. workers would not have their wages impacted. Through supply and demand, competitive market forces drive up the wage rates of most workers to levels considerably above the current federal minimum rate of $7.25 an hour (or the somewhat higher minimums imposed by many states).

Are minimum-wage workers poor?

Based on data from the Bureau of Labor Statistics, about half of all workers paid the minimum wage are teenagers or young adults under the age of 25, most of whom live in households with incomes far above the poverty line. To be sure, older workers earning the minimum wage are more likely to be struggling financially. Still, many are not poor.

Does raising the minimum wage increase or decrease employment?

Raising the minimum wage would increase the cost of employing low-wage workers. As a result, some employers would employ fewer workers than they would have under a lower minimum wage. However, for certain workers or in certain circumstances, employment could increase.

How can firms reduce the tax burden of the $15 minimum wage?

Even absent a decline in product demand, firms can reduce the tax burden of the $15 minimum wage by substituting capital for labor. For example, grocery stores might replace some cashiers with self-service checkout equipment.