Question

Bob lives in Vermont and works in New York. Vermont has a state minimum wage of $8.06 per hour and New York has a state minimum wage of $7.25 per hour. What is the least hourly rate that Bob's ER may pay him?

A. $8.06
B. $6.55
C. $7.25 (based on state where he's working, not living)
D. Either A, B, or C - ER may choose

Answer 1

Bob's employer must pay him at least $7.25 per hour, adhering to New York's state minimum wage, since this is the state where he is working.

Step-by-step explanation:

The least hourly rate that Bob's employer (ER) may legally pay him for working in New York is $7.25 per hour, based on the state where he is working rather than the state where he lives. This is because employers are required to adhere to the minimum wage laws of the state in which the work is performed, not the state of the worker's residence.

The federal minimum wage acts as a price floor, ensuring that employers cannot pay employees less than the legislated rate in the state of employment.