Quick Facts:
- The minimum wage has remained the same for most agricultural and non-agricultural
employees since 1978.
- There is no requirement to pay overtime wages to employees in agriculture
because of the seasonality of production.
- Any employer in agriculture that did not use more that 500 “man
days” of agricultural labor in the previous calendar quarter is
exempt from the minimum wage provisions.
Minimum wage standards were enacted into law in 1938. Since that time, there
have been 26 changes to the wage standard with the latest change coming
into effect September 1, 1997. The initial law covered only employees engaged
in interstate commerce or those in the production of goods used for interstate
commerce. The number of occupations included in the minimum wage laws has
steadily increased until, at present, the majority of jobs in the United
States are covered. Colorado law requires the same minimum wage standards
as the federal government.
Minimum Wage Law of 1997
On September 1, 1997 the minimum wage for most occupations in the United
States was increased from $4.75 per hour to $5.15 per hour. This increase
included workers in the agricultural sector. A new element to the minimum
wage law at this time was the enactment of an introductory wage for employees
under the age of 20 within the first 90 calendar days of employment. This
rate called for a minimum wage of $4.25 per hour.
Exceptions to the law were granted for full-time college students, student
learners and apprentices, and workers with disabilities. For jobs that
rely on “tips” to provide a significant proportion of the income,
an employer is required to pay a minimum wage of $2.13 per hour. However,
if the employer contribution combined with the “tips” falls
short of the minimum wage standard, the employer must increase their payment
to the employee to make up the difference.
Under the law, overtime pay is 1.5 times the employee’s normal wage.
The overtime pay commences when the employee exceeds a 12-hour workday
or a 40-hour workweek.
Agriculture
From the initial enactment of the minimum wage law in 1938 until 1967, there
was no minimum standard for agricultural workers. When agriculture was included
in the law on February 1, 1967 the minimum wage rate was the same as it
was for any other occupation considered under the law. This existed until
February 1, 1969, when the law changed to increase the non-farm minimum
wage, but not the agricultural minimum wage. This was the standard until
1978, when agricultural wages were increased to meet the standards for other
industries. Even though the agricultural industry falls under the minimum
wage guidelines there are important exceptions for the industry, including:
- Employees in the agriculture industry are exempt from the overtime
requirements.
- Any employer who does not use more than 500 “man days” of
farm labor during any calendar quarter of the preceding calendar year
is exempt from paying the minimum wage. A “man day” is defined
when an employee performs at least one hour of work.
- Agricultural employees who are members of the immediate family of
the employer are not covered by the standard.
- Those principally employed on the range for production livestock are
exempt from the minimum wage standard.
- Local hand harvest laborers who commute daily from their permanent
residence and are paid on a piece rate basis in traditional piece-rated
occupations, and who were engaged in agriculture less than 13 weeks
during the preceding calendar year, are exempt from the minimum wage
standard.
- Non-local minors under the age of 16, who are hand harvesters and
paid on a piece rate basis in traditional piece-rated occupations, employed
on the same farm as their parents, and paid the same rate as those over
the age of 16 are exempt from the minimum wage requirement.
It is important to note that the definition of agricultural employment
does not include work performed on a farm that is not incidental to or
in conjunction with the farmer’s operation. It also does not include
operations performed off a farm if performed by employees who are employed
by someone other than the farmer whose agricultural products are being
worked.
Given many employers’ concerns about managing labor-related risk,
it is important to understand if an operation’s employees are truly
exempt. The employer should assume that any labor demand directly related
to production tasks is exempt. However, those tasks that are more similar
to a typical small business (bookkeeping, routine maintenance of buildings
and machinery, processing, and marketing of products) are less likely
to be exempt from the overtime pay provisions.
For More Information
For further information on minimum wage laws visit the following Web
sites:
- www.dol.gov/dol/esa/public/minwage/chart.htm#2 - History of minimum
wage
- www.dol.gov/dol/esa/public/minwage/main.htm - Department of Labor
answer page
- http://laborstand.cdle.state.co.us/wageposter.html - Colorado Minimum
Wage Poster
- http://laborstand.cdle.state.co.us/ - Colorado Department of Labor
and Employment Frequently Asked Questions
- http://cdle.state.co.us/default.asp - Colorado Department of Labor
and Employment home page
- www.nolo.com/encyclopedia/articles/emp/min_wage.html - A comprehensive
self-help legal site with good information for employers.
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