You get a new job, which is advertised as paying minimum wage. You’re hoping to work your way up to a higher wage, but you’re happy to at least have employment so that you can begin paying some of your more pressing bills.
However, you’re surprised when you get your first paycheck and see that you’re only earning $7.25 per hour. When you ask your employer why your pay rate is so low, they tell you that that’s federal minimum wage, so that’s all they have to pay. Is this true?
The higher wage takes precedence
This is only true in the sense that the federal minimum wage is set at $7.25 per hour. However, the minimum wage in Hawaii is almost twice that, at $14 per hour.
In a case like this, where there is a conflict between federal and state minimum wage, the higher wage has to be paid. So, even though your employer may believe they are following the federal guidelines, since your business is in Hawaii, you should be paid at least $14 per hour. Paying you less is a form of wage theft.
What steps should you take?
Exactly how you need to proceed depends on a few different factors. Has your employer made an honest mistake and they just don’t understand the law, or are they trying to use it as an excuse to underpay you and violate wage and hour laws? It can be helpful to work with an experienced law firm as you sort through your options and determine what next steps to take to protect your rights.