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Wages: Which Location's Minimum Wage Do We Pay?

Posted by Michael Zamora on July 10, 2019

The Fair Labor Standards Act, or FLSA, is a federal law that regulates minimum wage, overtime, equal pay, recordkeeping, and child labor. Work being performed remotely counts as time worked. You must compensate remote nonexempt employees for all hours worked, whether that work is performed at home or another remote location, under FLSA.

Which Location's Minimum Wage Do We Pay?

Employers often have people working remotely or at a worksite in a different state, city or municipality. Therefore, employers often ask, is the minimum hourly wage based on the location in which the main practice is located, or is the minimum hourly wage based on the location in which the work is being performed.

The answer is simple: Your remote worker will be considered an employee in his or her location of residence, not the location where your practice is based.

It is also important to be aware that some cities and counties have even higher minimum wages than the state they are located in. In general, with most employment laws, you should adhere to the law that is most beneficial to the employee.

If you feel your Practice may need assistance with any of the above information, or you have a question that is not addressed here, please reach out to HR for Health and SCHEDULE A CALL, or call: 877.779.4747, or email: today!

HR for Health is one of the nation’s leading Human Resources Management Systems (HRMS) used by small to mid-sized practices. HR for Health has provided the following complimentary articles to ensure you have a game plan when addressing complex HR matters.

Topics: Wages, Minimum Wage, Location, Which minimum wage?, Hour, Remote Employees, Paying for work in a different location

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