Youth Minimum Wage

Youth Minimum Wage refers to a lower minimum wage rate that can be paid to workers who are younger than the standard minimum wage age requirement. These rates are typically set by federal or state governments to allow employers to pay a reduced wage to youth workers, often under the age of 20, for a limited period of time.

Example #1

For example, let's say the standard minimum wage in a state is $10 per hour. The state may allow employers to pay youth workers under the age of 18 a reduced rate of $8 per hour.

Example #2

Another example could be a federal regulation that permits employers to pay workers who are under 20 years old a lower wage for the first 90 consecutive calendar days of their employment.

Misuse

Misuse of Youth Minimum Wage could occur if employers exploit this lower wage rate by disproportionately hiring young workers instead of older, more experienced workers solely to save on labor costs. This could lead to age discrimination and deprive older workers of job opportunities.

Benefits

One of the benefits of Youth Minimum Wage is that it can provide younger individuals with valuable work experience and skills, making them more competitive in the job market. Employers may be more willing to hire and train youth workers if they can pay them a lower starting wage.

Conclusion

It is essential to monitor the use of Youth Minimum Wage to ensure it is not being misused to displace older workers or perpetuate unfair labor practices. By balancing the benefits for both employers and youth workers, the goal should be to create opportunities for young individuals to gain experience while safeguarding against discriminatory practices.

Related Terms

Minimum WageFair Labor Standards Act (FLSA)