Understanding the minimum wage is important if you are new to the world of work or just need an entry-level position. It gives you a chance to judge whether a prospect meets your needs and feels fair based on the work involved. If you are interested in the minimum wage in Louisiana, here are some things you should know.
What is a minimum wage?
A minimum wage is a dollar amount. This is the lowest wage rate that a company can offer an insured, non-released employee per hour worked.
The majority of the workforce is classified as not exempted. However, there are exemptions for full-time students, full-time students, young workers and disabled workers, depending on the type of employment scheme.
There is a federal minimum wage that states and cities must either meet or exceed. No state or city law can enforce a lower minimum wage, although they can create regulations that make a higher rate mandatory.
The last increase in the federal minimum wage was in July 2009. At that time, the hourly minimum wage for workers without tips was set at $ 7.25 per hour and for workers with tips at $ 2.13 per hour. However, tipped workers must still earn at least $ 7.25 an hour. If the value of their tips doesn't make the difference, the employer has to fill the gap.
In essence, the federal minimum wage is a base. States and cities can follow this rule – either by law or by default – or they can pass a minimum wage that exceeds this mark.
What is the minimum wage in Louisiana?
There are no state minimum wage laws in Louisiana. As a result, the minimum wage equals the federal minimum wage and is $ 7.25 per hour for workers without tips and $ 2.13 per hour for workers with tips, suggesting that their tip makes the difference, which is the equivalent of $ 7.254 per hour .
Is the Louisiana Minimum Wage a Living Wage?
In the simplest sense, a living wage is an income sufficient to support a household. Typically, the estimates are based on full-time hours assumed to be 40 hours per week or 2080 hours over the course of a year. A living wage varies depending on the size of the family.
A living wage of $ 14.06 per hour applies to single adults with no children. For two adults – only one of whom works – with two children, the living wage is $ 32.16 an hour. If both adults work in this household, they would each have to earn $ 19.99 an hour to collectively earn a living wage.
In all cases, the living wage is well below the Louisiana minimum wage. Aside from single adults with no children, the minimum wage wouldn't even bring your household above the poverty line.
Do you have an opinion on the minimum wage in Louisiana? Do you think it's fair Or is it too low? Do share your thoughts in the comments below.
If you'd like to read our blog posts and try your hand at blogging, we have good news for you. This is exactly what you can do on Saving Advice. Just click here to get started. Check out these helpful tools to save more. For investment advice, visit The Motley Fool.
Subscribe to our newsletter
Thanks for signing up