Do you employ any type of employee who does not need to be paid minimum wage?

[Deleted User]

For example, youth under 20 don't need to be paid $7.25. Comment if you have a similar situation!

rrupert

One that David didn't mention is the lower than minimum hourly rates for hiring mentally challenged employees -- Goodwill Industries is one of the more well known employers that pays less than minimum wage I think. But no, we have not ever paid less than minimum for any employee.

"Under section 14(c) of the Fair Labor Standards Act (FLSA), employers are able to pay a wage below the federal minimum wage to workers whose work is affected by a mental or physical deficiency. (The ADA does not change this provision.) The reduction in wage corresponds to the reduction in productivity as compared with a worker without a disability. This means that some disabled workers can make significantly less than the minimum wage, in some cases even less than a dollar per hour.

Employers must obtain a certificate from the Wage and Hour Division to set a wage below the federal minimum. According to the U.S. Labor Department, the certificate program has been implemented in the employment of over 420,000 disabled Americans.

This reduced wage, known as the subminimum wage, has been in effect since the 1930s, with several changes over the years. The National Industrial Recovery Act (NIRA) of 1933-1935 set the first productivity-based subminimum wage, which was adopted again with the passing of the FLSA in 1938.

The subminimum wage had a wage floor until 1986. Since then, the subminimum wage has been commensurate with productivity."