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The Complete Idiot's Guide® To Accounting by Lita Epstein, Shellie L. Moore

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Determining Wage Types

Employers have a lot of control over the decision of how much to pay their employees, but federal and state labor laws also must be followed. Be sure you understand these laws before you start hiring employees.
The most widely known labor law is the minimum wage law. As of July 24, 2009, the minimum wage is $7.25 per hour. This rate must be paid to all nonexempt employees for each hour worked up to and including 40 hours in a calendar workweek. Any time beyond 40 hours must be paid as time-and-a-half overtime, which works out to a current minimum of $10.875 per hour. While this is a federal law, some states have minimum wage rates that are higher, so be sure to check with your state about required wage rates.
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