Youth Pay Rules Explained: What You Should Know About Minimum Wage

Under the Fair Labor Standards Act, most workers must be paid at least the federal minimum wage. On top of that, they may also be eligible for overtime pay if they’ve worked more than 40 hours a week. But there’s one exception you might not know about: the youth minimum wage.

If you’re under 20 and just starting a new job, your employer may be allowed to pay you less. However, this lasts only for a short time, and only if certain conditions are met.

Here are the basics of youth minimum wage laws in the United States.  

How The Youth Minimum Wage Works

Under the FLSA, employers are allowed to pay workers under 20 a “youth minimum wage” of $4.25 an hour, but only for the first 90 consecutive calendar days of employment or until the worker’s 20th birthday, whichever comes first. The 90-day period begins on the very first day of work, not just the first scheduled shift. After turning 20, the employee must be paid at least the federal minimum wage, even if the 90 days aren’t up yet.

Who Can Use It?

Any business can apply this rule if:

• The employee is under 20
• It’s their first 90 days with that employer
• No state or local law mandates a higher youth wage

However, this isn’t a loophole to cut labor costs.

Anti-Displacement Protections

The law strictly prohibits employers from firing, replacing, or reducing the hours of existing workers just to hire someone at the youth minimum wage. This kind of displacement is illegal and can result in fines and legal action.

What Happens If an Employer Breaks the Rules?

If you’ve been displaced so someone else can be hired at the youth wage, you may be entitled to remedies such as:

• Reinstatement to your job
• Back pay for lost wages or hours
• Reimbursement for lost benefits like health insurance

Additional Rules to Know:

• You don’t need to be in a training program to qualify for the youth wage.
• You can earn the youth wage from more than one employer—each gets its own 90-day clock.
• Other special wage programs (like for student-learners or full-time students) can’t be combined to drop your wage below $4.25/hour.

Does the Rule Ever Expire?

Not at all. Under the FLSA, the youth minimum wage has no expiration date. But if the federal minimum wage increases, this youth rate does not. Rather, it stays at $4.25 unless Congress changes the law.

Get a Free Case Review

Consider getting in touch with Morgan & Morgan if you think your employer is using the youth wage rule unfairly, cutting corners, or pushing out older workers to save money. Our labor and employment attorneys may be able to represent you for free unless you win.

Disclaimer: This information is based on fact sheets that the Department of Labor provides.