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ARTICLE · 18 MAY 2017

The "Opportunity Wage" Exception For Younger Workers

Summer's approach has sparked renewed interest in the federal Fair Labor Standards Act's provision authorizing a less-than-$7.25 wage rate for certain younger employees in particular circumstances.

United StatesEmployment and HR

Summer's approach has sparked renewed interest in the federal Fair Labor Standards Act's provision authorizing a less-than-$7.25 wage rate for certain younger employees in particular circumstances.

While there is such an exception, it is limited in significant ways.

How It Works

The FLSA's Section 6(g) allows an employer to pay a worker who is under 20 years old at a rate of at least $4.25 an hour for the first 90 consecutive calendar days after the worker's initial employment by that employer. Of course, the employer may choose to compensate the worker at a higher wage rate between $4.25 an hour and $7.25 an hour.

The U.S. Department of Labor says that the 90-day period begins to run when the employee starts work – not when the employee was made an offer or accepted the job or is otherwise considered to be "hired" – and it includes the first day of work. This timeframe is counted in calendar days – not working days; it continues to run regardless of the

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