Minimum wage laws vary by jurisdiction. In the US and Canada, federal and state/provincial laws set minimum wages, while in Europe, each country sets its own rates. Laws may also cover tips and overtime. The Fair Labor Standards Act applies in the US, and employers must display posters and keep records. If state rates are lower than federal rates, workers receive the federal rate. In Canada, provinces and territories set their own rates, and federal employees are subject to provincial laws. In Europe, rates are independently determined for adult workers.
Minimum wage legislation can be passed by federal law. In the United States and Canada, specific states, provinces and territories can also determine the lowest amount an employee can be paid for their work. European countries set their own national minimum wage rates for full-time employed adults.
Labor laws for workers determine much more than the minimum amount the workforce in a specific jurisdiction will be paid. Minimum wage legislation may define different pay rates for people working in industries where tips form a regular part of their earnings. A person working in these types of service jobs will receive less hourly wages than the standard minimum rate of pay, provided the difference is made up in tips. Minimum wage statutes may also cover the maximum number of hours an employee can work before being paid for overtime.
The Fair Labor Standards Act is the federal minimum wage legislation that applies to employees in the United States. In addition to establishing a nationwide minimum wage for workers, this law also requires employers to display a poster explaining employee rights under workplace legislation. Legal provisions also require employers to keep records of the hours worked by employees and the amount paid to each person.
Most US states also have their own minimum wage legislation in place. In cases where state minimum wage rates are lower than the amount prescribed by federal law, workers are eligible to receive compensation at the amount of the federal minimum wage. If the state minimum wage is higher than that set by federal law, the level set by the state applies.
In Canada, the provinces and territories are all responsible for passing their own minimum wage legislation. This amount varies by jurisdiction. Federal government employees are subject to minimum wage laws in the province where they work.
Minimum wage legislation in Europe is determined by each country. The rate of pay for adult workers is independently determined and applies to workers aged 23 and over. In some European countries, the minimum wage is based on a standard number of hours worked per week. In other countries, minimum wages are determined by the provisions of a national collective agreement.
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