What is the purpose of the National Minimum Wage Act?

The National Minimum Wage Act (NMWA) was established in order to protect workers from being exploited and to ensure they are paid fairly for their labor. This act was signed into law in 1938 as part of the Fair Labor Standards Act and it sets the lowest hourly wage employers can legally pay in the United States. In New Hampshire, the present minimum wage is $7.25 an hour, which is the same as the federal minimum wage and is regulated by both federal and state laws. The purpose of the NMWA is to ensure that workers in New Hampshire are paid a minimum wage rate that is in line with the cost of living in the state. This wage rate is reviewed periodically and if deemed necessary, it is adjusted to best protect the rights of the workers. The NMWA also guards against a situation where workers are paid less than the federal or state minimum wage rate. The NMWA also allows for certain exceptions such as tipped employees and those who are under the age of 20 who can be paid a lower wage rate of not less than $4.25 an hour for their first 90 calendar days of employment. Additionally, there are certain professions that are exempt from the NMWA and are not subject to minimum wage regulations including executive, administrative and professional employees, outside sales employees, and farm workers. Lastly, the NMWA is designed to ensure that workers who are employed in New Hampshire are paid a fair wage for their labor and are not subject to unfair exploitation. It also is designed to protect the rights of New Hampshire workers and ensure they can earn a minimum wage that is in line with the cost of living in the state.

What is the purpose of the National Minimum Wage Act?

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