What is the difference between a minimum wage law and a living wage law?

Minimum wage laws and living wage laws both require employers to pay employees an hourly wage, but the two are quite different. Minimum wage laws in Mississippi set the current rate of wages that employees must receive for all hours worked. Mississippi’s minimum wage is currently set at $7.25 per hour for non-exempt employees. All Mississippi employers must pay their employees at least this rate. Living wage laws, on the other hand, require employers to pay a wage that provides a standard of living above the poverty line. While a minimum wage typically covers basic goods and services, a living wage provides a wage that meets the cost of living in a particular area, taking into account housing, food, transportation, and other necessities. In Mississippi, living wage rates vary by municipality and are typically higher than the statewide minimum wage. In summary, minimum wage laws guarantee employees a certain minimum rate of pay, whereas living wage laws require employers to pay employees an hourly wage that indicates an acceptable standard of living in their area.

Related FAQs

Are employers allowed to offer flexible working hours?
What is the difference between a salaried and an hourly employee?
What are the employer’s responsibilities for paying minimum wage?
Are employers allowed to reduce an employee’s wages while they are on vacation?
How is wage and hour law different from labor law?
What are the rules for paying salary employees overtime?
What are the differences between independent contractors and employees?
What are the requirements for conducting background checks on potential employees?
What are the laws governing wages and tips for tipped employees?
What is the difference between exempt and nonexempt employees?

What is the difference between a minimum wage law and a living wage law?

Related FAQs

Related Blog Posts