OPA News Release: Statement by US Labor Secretary Thomas E. Perez on mayors' resolution calling for an increase in the national minimum wage [06/19/2014]

News Release

Statement by US Labor Secretary Thomas E. Perez on mayors' resolution calling for an increase in the national minimum wage

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez today issued the following statement regarding the resolution under consideration at the meeting of the United States Conference of Mayors in Dallas, Texas, June 20-23 that calls for an increase in the national minimum wage:

"For nearly five years, workers at the bottom of the income ladder have not seen a raise even as their housing, transportation, food, utility and child care costs have all gone up. No one who works full time in America should have to raise their families in poverty.

"That's why President Obama has fought to increase the national minimum wage from $7.25 to $10.10 per hour and boost the incomes of 28 million Americans, lifting two million out of poverty. These workers are not teenagers earning weekend spending money, but hard-working adults with bills to pay and mouths to feed. They deserve a raise.

"From coast to coast, we're seeing a surge of momentum on this issue, with states, localities and forward-thinking businesses raising wages. They're not just responding to overwhelming public support for higher wages; they know that it's good for the bottom line and invigorates an economy driven by consumer spending.

"I support the resolution before the U.S. Conference of Mayors calling on Congress to raise the national minimum wage and encouraging states and local governments to do the same. This resolution, coupled with grassroots-powered action nationwide, is part of a groundswell that proves change doesn't always come from Washington, sometimes it comes to Washington. I applaud San Francisco Mayor Ed Lee and his colleagues from cities across the country for leading on this issue and introducing the resolution. I urge its swift adoption."

Date
June 19, 2014
Release Number
14-1198-NAT
Media Contact: Jason Surbey
Phone Number

OPA News Release: Statement by US Labor Secretary Perez on Senate's minimum wage vote [04/30/2014]

News Release

Statement by US Labor Secretary Perez on Senate's minimum wage vote

WASHINGTON — U.S. Secretary of Labor Thomas E. Perez released the following statement after the Senate's vote on the Harkin-Reid-Merkley legislation that would have raised the federal minimum wage to $10.10 per hour:

"Today, a minority of U.S. senators blocked a minimum wage increase that a strong majority of the American people supports. In so doing, they have rejected a long bipartisan tradition of rewarding hard work with a fair wage.

"No one who works full time in the United States should have to raise their family in poverty. But that is exactly the situation for millions of people barely surviving on as little as $7.25 per hour. Life is a daily struggle for these workers who want nothing more than the dignity of a paycheck that can support their families. Too many of them are forced to rely on public assistance just to get by.

"Raising the federal minimum wage to $10.10 per hour would benefit 28 million workers. And, as I've seen in my travels across the country, many employers see higher wages as an investment that makes good business sense. Raising the federal minimum wage is the right thing to do for our workers and the smart thing to do for our economy.

"On behalf of minimum wage workers in their states, I hope that senators who opposed moving forward on this bill will reconsider their position. It's time to give America a raise — a raise our workers need, a raise they've earned, a raise they deserve."

Date
April 30, 2014
Release Number
14-0736-NAT
Media Contact: Jason Surbey
Phone Number

Tips

A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

Subminimum Wage

The Fair Labor Standards Act (FLSA) provides for the employment of certain individuals at wage rates below the minimum wage. These individuals include student-learners (vocational education students), as well as full-time students employed by retail or service establishments, agriculture, or institutions of higher education. Also included are individuals whose earning or productive capacity is impaired by a physical or mental disability, including those related to age or injury, for the work to be performed.

Severance Pay

Severance pay is often granted to employees upon termination of employment. It is usually based on length of employment for which an employee is eligible upon termination. There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative). The Employee Benefits Security Administration (EBSA) may be able to assist an employee who did not receive severance benefits under their employer-sponsored plan.

Overtime Pay

An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA) must receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest, unless overtime hours are worked on such days.

Minimum Wage

The federal minimum wage for covered nonexempt employees is $7.25 per hour.

Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Merit Pay

Merit pay, also known as pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. This usually involves the employer conducting a review meeting with the employee to discuss the employee's work performance during a certain time period. Merit pay is a matter between an employer and an employee (or the employee's representative).

The Fair Labor Standards Act (FLSA) does not require or address the issue of merit pay.

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