Q: Based on what law or part of the Constitution do cities or states have the authority to order minimum or equal pay by private companies?
— S.D.O., San Pedro
A: The minimum wage was introduced during the Depression. Research indicates that as a result of a lack of regulation, thousands of workers were exploited in factories and sweatshops, toiling in awful conditions for very little pay. President Franklin Roosevelt signed the Fair Labor Standards Act into law in early 1938.
One of the provisions of the FLSA created a mandatory federal minimum wage (at that time, 25 cents an hour). The purpose is to maintain a “minimum standard of living necessary for health, efficiency and general well-being, without substantially curtailing employment.” Since then, Congress has revised the minimum wage from time to time to take into consideration inflation and the cost of living.
California’s minimum wage has been higher than the federal rate since 1998. A chart showing the federal minimum wage over time can be found at the website of the U.S. Department of Labor (www.dol.gov). Type “minimum wage chart” in the search box.
In terms of equal pay, The Equal Pay Act of 1963 amended the FLSA to combat wage disparity based on gender. As you may know, California recently enacted the Fair Pay Act, which seeks to strengthen the protections in favor of equal pay (a topic I addressed in a January column).
Q: Are there any exceptions to being required to pay minimum wage?
— L.W., Wilmington
A: There are actually quite a few exceptions, any number of which remain controversial. Examples include farm workers, baby-sitters, seasonal workers and tipped employees. A list is available online from the U.S. Department of Labor. As suggested above, go to the department’s website and type “minimum wage exemptions” in the search box.
Did you know?
Every workplace with employees subject to the Fair Labor Standards Act’s minimum wage provisions must permanently post in a conspicuous place a notice explaining the act so employees are able to read it. The content of the notice is prescribed by the Wage and Hour Division of the Department of Labor. An approved copy of the minimum wage poster is available at the department’s website (www.dol.gov). Type “minimum wage poster” in the search box.
Ron Sokol is a Manhattan Beach attorney with more than 30 years of experience. His column appears on Wednesdays. Email questions and comments to him at RonSEsq@aol.com or write to him at Ask the Lawyer, Daily Breeze, 21250 Hawthorne Blvd., Suite 170, Torrance, CA 90503.