When you get your first paycheck from your new job, you are shocked by how little you have earned. And it is not just the fact that taxes were removed from your paycheck. When you look at the hourly rate, your boss is only paying you $7.25 per hour.
You go to your boss to complain, and they tell you that this is the federal minimum wage. They believe they are fully in line with the law. But is it actually true that they can pay you so little?
Not in California
The way that minimum wage is set up, there is a federal minimum wage of $7.25 per hour. All states must at least adhere to this guideline. However, states are also allowed to set their own minimum wage, and the higher of the two must be paid in most cases.
For example, a state like Mississippi does not have a state minimum wage at all. This means that the base level for pay is $7.25 per hour, in line with federal regulations.
But in California, the minimum wage has been set at $16.50 per hour. Most employers are required to pay this higher amount, even though the federal line is lower. Your boss may think that all they have to do is follow the federal guidelines, but they are violating state law and committing wage theft.
Your legal options
Situations like this can be difficult to resolve. It is critical for employees to understand all of the options they have when experiencing wage theft and similar violations.