10.2.2 Minimum Wage Claims

The federal minimum wage, for covered employees, is still absurdly low. Even lower wage rates are allowed for certain types of workers such as tipped employees, employees under 20 years of age for the first 90 days on the job, student learners, full-time students, and handicapped workers (under certificates issued by the Department of Labor). Nevertheless, your client may have a contract setting a special rate of pay or be in a particular occupation covered by more generous pay laws.

FLSA requires payment in cash or cash equivalent (e.g., food and lodging). The regular rate of pay includes base pay plus premiums, cost of living allowances, bonuses, and fair value of anything the employer provides as part of the pay, so long as the employee voluntarily receives the benefit, it is primarily for the employee’s benefit, and it is not illegal. The rate of pay does not include benefit plan contributions, paid vacations, discretionary bonuses, and so on. Generally, uniforms and essential tools may not be deducted from an employee’s minimum wage.

FLSA does not restrict states or municipalities from establishing a higher minimum wage, but Louisiana has not joined other states that have enacted a higher minimum wage. In fact, in 1997 the Louisiana legislature, responding to attempts in New Orleans to place a referendum for a higher minimum wage on the local ballot, passed La. R.S. 23:642, which prevents local governments from establishing a higher minimum wage.