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

Minimum wage laws and living wage laws are two distinct types of state and federal regulations designed to protect workers from unscrupulous employers. Minimum wage laws set the minimum amount of money that an employer must pay their employees. This amount is based on the state or federal regulations and cannot be lower than the set amount. Living wage laws, on the other hand, go beyond the minimum wage and require employers to pay their employees an amount that is high enough for them to live comfortable. Living wage laws are usually set by state or local governments and are determined based on the cost of living in that area. Unlike minimum wage, the amount set as a living wage can be higher than the state or federal minimum wage. In Pennsylvania, the minimum wage is the same as the federal minimum wage, which is currently set at $7.25 per hour. However, some cities have adopted local living wage ordinances that require employers to pay a higher wage. For example, Philadelphia has adopted a living wage that requires employers to pay $15 per hour. Overall, minimum wage laws set the baseline for how much an employer must pay its employees, whereas living wage laws set the higher wages necessary for employees to live comfortably in a given area. Both of these laws serve to protect workers from exploitation by employers.

Related FAQs

What is the difference between wages and benefits?
Are employers allowed to pay tipped and non-tipped employees different wages?
What are the requirements for providing paid time off?
Are employers allowed to ask an employee for medical documentation for an extended absence?
Are employers allowed to offer flexible working hours?
What are the rules for paying salary employees overtime?
Are there any exceptions to minimum wage laws?
What are the differences between independent contractors and employees?
Are employers allowed to pay employees differently based on their education level?
What is the minimum wage for tipped workers?

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

Related FAQs

Related Blog Posts