Super Straightforward Simple Methods The professionals Use To advertis…
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What Is the Minimum Wage? Advertiser disclosure You're our first priority. Every time. We believe everyone should be able to make sound financial decisions without hesitation. Although our site doesn't feature every company or financial product that is available on the market We're pleased of the guidance we provide, the information we provide as well as the tools we design are impartial, independent, straightforward -- and cost-free. So how do we earn money? Our partners compensate us. This could influence the types of products we review and write about (and the places they are featured on our website) However, it in no way affects our advice or suggestions, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. . What is the Minimum Wage? Minimum wages, minimum tipped, median wages and pay gaps are different by state. by Anna Helhoski Senior Writer | Financial news, consumer finance trends, loans for college students loan and debt Anna Helhoski is a senior journalist who covers economic news and current trends in consumer finance for NerdWallet. Additionally, she is an expert for student loans. She joined NerdWallet at the beginning of 2014. Her work has been featured on The Associated Press, The New York Times, The Washington Post and USA Today. She was previously a reporter for local news from New York for the Daily Voice, as well as local news in New York metro area for the Daily Voice and New York state politics for The Legislative Gazette. She has a bachelor's degree in journalistic studies from Purchase College, State University of New York. January 23, 2023 Editor: Rick VanderKnyff Senior Assigning Editor | Los Angeles Times; University of California, San Diego; Microsoft Rick VanderKnyff leads NerdWallet's news efforts and manages the team responsible to expand NerdWallet content to include additional topics in personal finance. Previously, he has worked as a channel manager for MSN.com and as a web manager at University of California San Diego as well as an editor for copy and staff writer for The Los Angeles Times. He has a Bachelor of Arts in communication, as well as a Master of Arts in Anthropology. A majority of the products we feature are from our partners who pay us. This impacts the types of products we feature and where and how the product appears on a page. But this doesn't affect our opinions. Our views are our own. Here's a list of and . Show More A federal minimum that is $7.25 per hour hasn't changed since 2009, despite an increase in the costs of living, that has led to a dramatic increase in inflation in the last year. Thirty states as well as Washington, D.C., have minimum wages set above the federal minimum. Minimum wage and time The minimum wage has not kept pace with inflation when you look at nominal wages (not adjusted for inflation) against their spending power in 2022 numbers (adjusted to account for inflation). Because the federal minimum wage hasn't changed since 2009, its real purchasing power has decreased dramatically. A decrease in purchasing power makes it much more difficult for people to make ends meet on a minimal wage. State minimum wage The minimum wage is different for each state. Five states have no minimum wage laws, but Federal minimum wages is applicable to them. They include Alabama, Louisiana, Mississippi, South Carolina and Tennessee. In some states there is a minimum wage that is more, depending on the state's minimum wage laws. or region within the state has an upper minimum. Is raising the minimum wage going to cause inflation? No. The federal minimum wage is set by the government , and is not directly linked to inflation. The current inflationary conditions were not caused by this minimum wage. It has not changed since 2009. Are all workers paid at the minimum wage? All workers covered by the Fair Labor Standards Act must be paid at least the federal minimum wage and can earn higher in the event that the state minimum wage is higher. According to the Department of Labor, workers who are not covered under the FLSA, who may be paid less than minimum wage, are: Employees of specific seasonal amusement or recreation establishments. Employees of certain tiny newspapers as well as newspaper delivery staff. Seamen on foreign vessels, or those employed in fishing operations. Certain farmworkers. Casual babysitters. Support for elderly individuals or those with disabilities. Professional, executive and administrative employees. They are also exempt from overtime payments. (Learn more about who is -- and isn't -- eligible for overtime pay on the .) Does minimum wage include tips? Tipped employees include those who depend on tips from customers to boost their earnings. The average tipped employee receives more than $30 in monthly tips, according to the Department of Labor. Tipped employees must receive the minimum wage of $2.13 per hour, also known as cash wage. That cash wage is combined with tips in order to meet the minimum wage for federal employees which is $7.25 an hour. These tips are referred to as a "tip credit" and allows businesses to pay workers less than that federal minimum wage. Employers are able to credit as much as $5.12 per hour in tips towards a worker's wages. If an employee's wages (at minimum $2.13 for an hour) with tips is lower than $7.25 for an hour their employer must make up the difference. Minimum tipped wages and maximum tip credits differ by city and state. Washington, D.C., has the most tipped workers' minimum wage of all workers in the nation. As of the 2022 election, Washington, D.C. residents voted to incrementally increase their minimum wages to tipped employees every year up to July 1 2027. Then the minimum wage for tipped employees will be set to match the same minimum as the minimum wage for nontipped workers that year. The current minimum wage is $5.35 per hour for tipped workers , and $16.10 on nontipped staff. State-mandated minimum wage is tipped. What states are raising minimum wages? Each every year, fourteen states plus Washington, D.C., automatically increase the minimum wage in line with the rise of inflation, usually tied in conjunction with U.S. Bureau of Labor Statistics' , or CPI. If the index doesn't change, neither will the wage. Certain states have annual limits on annual inflation increases, like California (3.5 percent), Minnesota (2.5%) and Vermont (5 5 percent). States where minimum wage increases are tied to inflation, adjust their wages as of January. 1, unless stated, in accordance with the . Those states include: Alaska. Arizona. California. Colorado. District of Columbia (adjusts July 1). Maine. Minnesota. Montana. New Jersey. New York (adjusts Dec. 31). Ohio. Oregon (adjusts July 1). South Dakota. Vermont. Washington. Connecticut is scheduled to index wages to inflation as of January. 1st, 2024. The minimum wage is increased How much is the average household salary for the U.S.? The median household income for a single person is $70,784, as per data from the latest U.S. Census Bureau population survey data for 2021. State median income >> MORE: What is the gender pay gap? Women typically earn less money than men: In 2020 the females earned just 83 cents on each dollar earned by men, as per the Census Bureau. Between women and men who worked full-time throughout the year in 2019 (the most recent data from the Census Bureau's American Community Survey), the national median earnings wage difference was $10,150 and men earned an average of $53,544 and women earning a median wage of $43,394. The wage gap widens when you consider every state. The states that have the largest average wage gaps between men and women include: Wyoming: $21,676. Utah: $17,303. District of Columbia: $16,032. Louisiana: $14,926. Washington: $14,609. The states with the lowest average wage gaps between women and men include: Vermont: $4,600. Nevada: $6,013. Hawaii: $7,022. California: $7,162. Maryland: $7,594. Which is the most significant gender pay gap in your state? A gender pay gap is present for women with less education levels. For those with less than having a high school degree the average wage for women was the equivalent of 66 cents for every dollar waged by men as per the U.S. Government Accountability Office. Here are the most current median earnings differentials by degree, in accordance with race and gender, as reported through the National Center for Education Statistics. Gender Associate degree median earnings Median earnings for bachelor's degrees Median earnings for master's degrees Men $48,390. $63,950. $84,010. Women $34,780. $50,000. $60,930. Race Associate degree median earnings Bachelor's degree median earnings Median earnings for master's degrees Asian $39,130. $59,910. $85,000. Black $35,850. $44,300. $53,540. Hispanic $38,890. $45,160. $59,370. White $44,500. $59,600. $69,560. Which is your racial wage gap? The wage disparities are stark when they are broken down by races or ethnicity Department of Labor data indicates. When compared with every dollar earned by white workers: Hispanic/Latino workers earn 73 cents. Black workers earn the equivalent of 76 cents. Native American/American Indian workers earn an average of 77 cents. Multiracial workers earn 81 cents. Asian-Pacific Islander workers earn $1.12. What is the gender-based wage gap? This gender wage gap is exacerbated further due to the racial wage disparity according to the data of the Government Accountability Office. When compared with every dollar made by white men: Latina/Hispanic women earn 58 cents. Black women earn 63 cents. Women of color earn 79 cents. Asian women earn 97 cents. How can we measure the LGBTQ+ gender or gender identity pay gap? Gender identity and gender gender among LGBTQworkers can also be found to influence income, according to a 2021 analysis of pay data from the Human Rights Campaign. LGBTQ+ workers are more likely to earn 90 cents per dollar that a typical worker earns (as infull-time, full-time public and private sector workers who are not farmers). According to the Human Rights Campaign data, when compared with every dollar made by the average worker: Men from the LGBTQ+ community earn 96 cents. Women who belong to the LGBTQ+ community earn 87 cents. Genderfluid, genderqueer, nonbinary and two-spirit workers earn 70 cents. Transmen earn 70 cents. Trans women earn 60 cents. About the author: Anna Helhoski is a writer, and NerdWallet's expert in the field of student loans. Her writing has been featured in The Associated Press, The New York Times, The Washington Post and USA Today. On a similar note... Dive even deeper in Personal Finance Do all the right financial moves Here is more in regards to california payday loan $255 take a look at the web site. |
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