Cole is a minimum wage employee in Santa Fe,NM,where the minimum wage is $10.91 per hour.His employer claims that since the federal minimum wage is $7.25 per hour,Cole should only receive the federal amount.What is the correct answer in this situation?
A)The employer has the discretion to pay either the federal or the state-designated minimum wage.
B)The employer may choose to pay less than the state-designated minimum wage,based on the employee's qualifications and job description.
C)The employer is correct that the federal minimum wage overrules the state wage.
D)The employer must pay the state-designated minimum wage for the area.

Question

Quizplus · Accepted Answer

In this situation, the employer must pay the state-designated minimum wage for the area, which is $10.91 per hour in Santa Fe, NM. The federal minimum wage is the minimum standard that all employers must meet, but if the state minimum wage is higher, then employers in that state must pay the state minimum wage. Therefore, even if the federal minimum wage is lower, employers in Santa Fe must pay the higher state-designated minimum wage.

Cole Is a Minimum Wage Employee in Santa Fe,NM,where the Minimum