You are looking for a job while going to college in Illinois, and you find one that will pay you minimum wage to work part-time. You certainly wanted a higher wage, but you are honestly happy just to have employment. You are sure that you will start making more money after you graduate from college and get your degree.
But when you show up for work, you find out that your employer says they are only going to pay you $7.25 an hour. That is much lower than you thought was possible in Illinois. But your employer points out that the federal minimum wage is $7.25, and they claim that is all they have to pay. Is this true?
States can set their own minimum wage
In some states, like Alabama, there is no minimum wage. These states have to adhere to the federal standards. So in Alabama, the lowest wage someone could be paid is $7.25 per hour.
States are allowed to set their own minimum wage, and many do. If it is higher than the federal minimum wage, then employers generally have to follow the higher standard, with a few exceptions. But in most cases, the higher wage takes precedence.
In Illinois, the minimum wage has been set at $15 per hour. Therefore, despite the fact that the federal minimum wage is less than half of that, your employer does have to pay the higher total. If you are not being paid $15 an hour and are instead being given $7.25 per hour, it could be an example of wage theft.
Situations like this can be very complicated, so be sure you know exactly what legal steps to take.
