Question 1

What legislation established the federal minimum wage?

Accepted Answer

The Fair Labor Standards Act established a federal minimum wage in 1938. Prior to its passage, several state governments had enacted minimum wages to address concerns about women and children working in sweatshop environments. These laws were challenged in court and declared unconstitutional. In 1941, the Supreme Court reversed course and validated the constitutionality of state minimum wage requirements.

Question 2

What is the difference between the local, state and federal minimum wage?

Accepted Answer

State and local jurisdictions may have minimum wage laws that exceed FLSA requirements. In these cases, employees are entitled to the highest applicable rate. If no state or local minimum wage exists, employers use the federal minimum wage.

Question 3

May an employee agree to work for less than the minimum wage?

Accepted Answer

Collective bargaining agreements and individual contracts cannot supersede minimum wage laws. However, there are circumstances where certain types of workers may be paid less than the applicable federal, state or local jurisdiction minimum wage. Examples include workers with disabilities, full-time students, tipped employees, student learners and youth workers. Note: State and local laws may differ.

Question 4

Is the minimum wage the same for both adult and minor employees?

Accepted Answer

Employees younger than 20 years old may be paid less than the federal minimum wage for the first 90 consecutive calendar days of employment. After this time or when the employee turns 21, whichever comes first, the employee is entitled to the full minimum wage rate. If a state or local law requires payment of a higher minimum wage and makes no exception for workers under age 20, the higher rate applies. Note: Youth workers paid less than minimum wage must not displace other workers.

Question 5

Does a business have to pay the minimum wage if it only has one employee?

Accepted Answer

Nonexempt employees who work for an organization with at least two employees, otherwise known as an enterprise, are covered by the FLSA. Even when there is no enterprise coverage, workers are protected by the FLSA if their work regularly involves commerce between states, or interstate commerce. Domestic service workers, such as housekeepers and babysitters, are also normally entitled to minimum wage. Note: State and local laws may differ.

Question 6

If a worker also gets paid tips, can an employer use the tips as a credit toward the obligation to pay the minimum wage?

Accepted Answer

Employers who claim a tip credit generally may pay a tipped worker less than minimum wage. However, the worker’s cash wages and total tips must meet or exceed the minimum wage. If not, the employer must pay the employee the difference.

Federal

Fast Wage and Tax Facts

Federal Tax Facts

Minimum Wage

Effective 7/24/2009

FICA (Medicare)

FICA (Social Security)

FUTA (Employer-Paid)

Supplemental Wage / Bonus Rates

Health Savings Accounts

Pension Plans

Colorado State Tax Facts

Colorado Minimum Wage - Minimum Wage

Effective 1/1/2025

Colorado State Income Tax

Colorado Unemployment Insurance

Colorado Disability Insurance