Understanding how minors are paid in the United States requires looking at federal rules and state-specific laws. While the federal minimum wage currently stands at $7.25 per hour, there are provisions that affect workers under 20 years old, particularly at the start of employment. This article explains when a minor can earn less than the standard minimum wage, how long that can last, and what employers and young workers should know about exemptions, training wages, and state variations.
Federal Rules And The 85 Percent Training Wage
Under the federal Fair Labor Standards Act (FLSA), employers may pay workers under 20 years old a reduced wage during the first 90 consecutive calendar days of employment. This “youth minimum wage” is set at 85% of the federal minimum wage, which, for the current rate of $7.25, equals $6.16 per hour. The 90‑day clock starts when the employee first begins work and ends after the initial period, with full minimum wage required afterward.
After the 90‑day limit, employers must pay the applicable minimum wage to these employees. Employers should track the timeline carefully to avoid wage violations. It’s important to note that the 85% rule applies only to new, non-tarm employees under 20; it does not apply to workers who reach age 20 during the 90 days or to workers already 20 or older.
Another related provision concerns “training wages.” Some jobs may be defined as training positions where an individual receives instruction while performing tasks. In many cases, training wages fall under the same 85% framework if the trainee is under 20 and the job is within the allowed period. Employers should ensure the wage being paid fits the specific classification and length of time for the training role.
State Variations And Exceptions
State and local laws frequently change wage requirements, and many states have minimum wages higher than the federal rate. In some states, youth wage provisions mirror federal rules, while others place stricter limits or ban reduced wages altogether. For example, several states require that any employee under 20 receive the state minimum wage, regardless of the duration of employment, while others allow a temporary lower rate with more explicit criteria.
Additionally, some states set different thresholds for what counts as “youth” or youth wage eligibility. A few states also cap or prohibit reduced wages for specific occupations or industries, such as fast food or seasonal labor. Employers must consult state wage orders, labor departments, or official websites to determine the exact rules that apply locally.
When wages are set by state law, the higher of the federal or state minimum wage generally applies. In practice, a minor working in a state with a higher minimum wage will receive the higher rate, not the 85% federal rate. Workers should review the state’s wage statute and any local ordinance that governs youth wages to avoid misclassification.
Tipped Workers And Other Special Cases
Tips complicate wage calculations for minors and all workers. The federal minimum for tipped employees is $2.13 per hour, with the expectation that tips bring earnings up to at least the federal minimum wage when combined with the base wage. If the combined earnings do not reach the required wage, the employer must compensate the shortfall. For minors, these rules generally align with the standard tipped‑employee framework, but local rules may impose stricter conditions or higher base rates.
There are additional considerations for minors in occupations with higher safety or training standards. Some jobs require background checks, certifications, or specialized supervision, which can affect how wages are structured. Employers should document the duties performed, the duration of any training period, and how wages were calculated to defend against wage disputes.
Other exceptions can include apprenticeships, on‑the‑job training programs, or federally funded programs. These programs may have separate funding rules and wage requirements that are distinct from standard employment. It is essential to verify program-specific guidance before implementing any reduced wage arrangement.
How Wages Are Calculated For Minors
Calculating wages for minors requires careful accounting of hours worked, overtime, and any applicable training or youth wage provisions. Overtime rules under the FLSA apply to most employees, including minors, at a rate of one and a half times the regular rate for hours worked over 40 in a workweek. Some states have more generous overtime protections that extend beyond federal requirements.
In practice, a minor on a 90‑day youth wage period may earn $6.16 per hour for the initial period, but only for eligible hours and days. Hours must be tracked precisely, as mixed schedules with both regular and training work can complicate calculations. When the 90‑day period ends, payroll must convert to the higher wage rate, and overtime must be calculated accordingly.
Employers should maintain clear wage statements showing hours, base rates, any reduced rates, and the transition to the standard wage. Providing transparent pay information reduces confusion and helps protect against wage disputes. Young workers benefit from reviewing pay stubs to confirm the correct wage rate, hours, and overtime compensation.
Practical Tips For Employers And Young Workers
- Verify eligibility: Confirm whether youth wage provisions apply in the state and whether the job qualifies for a reduced rate during the initial period.
- Track time accurately: Use a reliable timekeeping system to document start dates, hours, and any training periods to ensure proper wage application.
- Plan transitions: Prepare a clear plan for when the wage will increase to the standard rate, and communicate timelines to the employee in writing.
- Understand overtime: Ensure overtime is paid at the correct rate and that state overtime rules are followed in addition to federal requirements.
- Document classifications: Keep records that distinguish training, job duties, and rated classifications to defend wage decisions if questioned.
For young workers, being informed about the interplay of federal rules, state laws, and practical payroll practices helps protect earnings and reduce confusion. If a wage situation feels uncertain, consulting the state department of labor or seeking legal guidance can clarify rights and responsibilities. Employers who adhere to accurate classifications and transparent payroll practices build trust and comply with applicable wage laws.