Our phone lines are currently not accepting calls due to a network outage. Please email all Social Security Disability inquiries to stacy@donatilaw.com. All other inquiries can be directed to amy@donatilaw.com.

Donati Law, PLLC
  • Home
  • About Us
  • Our History
  • Our Team
    • Don Donati
    • Wanda Donati
    • William "Billy" Ryan
    • Alison Ryan
    • Bryce Ashby
    • Robert Donati
    • Ellen Donati Flechas
    • Janelle Crandall Osowski
    • Melissa Stewart
    • Ruchee J. Patel
  • Practice Areas
    • Employment Law
    • Car Accidents
    • Consumer Law
    • Civil Rights
    • Criminal Defense
    • Immigration Law
      • Resources
      • Family Immigration
      • Employment Immigration
      • Asylum & Refugee Status
    • Personal Injury
    • Social Security Disability
    • Wage & Hour Violations
    • Workers' Comp
  • COVID Resources
    • ADA Reasonable Accommodation: COVID-19
    • COVID-19 Safety Complaints & Whistleblower Protections
    • Medical and Family Leave: COVID-19
  • Blog
  • Results
  • Testimonials
  • Contact Us
(901) 209-5500

Call for Prompt Legal Assistance

    • Home
    • About Us
    • Our History
    • Our Team
      • Don Donati
      • Wanda Donati
      • William "Billy" Ryan
      • Alison Ryan
      • Bryce Ashby
      • Robert Donati
      • Ellen Donati Flechas
      • Janelle Crandall Osowski
      • Melissa Stewart
      • Ruchee J. Patel
    • Practice Areas
      • Employment Law
      • Car Accidents
      • Consumer Law
      • Civil Rights
      • Criminal Defense
      • Immigration Law
        • Resources
        • Family Immigration
        • Employment Immigration
        • Asylum & Refugee Status
      • Personal Injury
      • Social Security Disability
      • Wage & Hour Violations
      • Workers' Comp
    • COVID Resources
      • ADA Reasonable Accommodation: COVID-19
      • COVID-19 Safety Complaints & Whistleblower Protections
      • Medical and Family Leave: COVID-19
    • Blog
    • Results
    • Testimonials
    • Contact Us
  • Search
  • Contact
  • Staff
Blog /2019 /October /What is a "Subminimum Wage" Exemption, and is it Legal?


Categories
  • ADEA
  • Affordable Care Act
  • Age Discrimination
  • Arbitration Agreements
  • At-Will Employment
  • Breach of Contract
  • Car Accident
  • Carbon Monoxide
  • Claim Management
  • Class Action
  • Commercial Appeal
  • Commission-Based Employees
  • Congress
  • Criminal Defense
  • Criminal Record
  • DACA
  • Disability
  • Disability Claim
  • Discrimination
  • DOMA
  • DREAM Act
  • EITC
  • Employee Misclassifications
  • Employment Law
  • Employment Termination
  • Estate Law
  • Expungement
  • Fair Credit Reporting Act
  • Family and Medical Leave Act
  • FAQ
  • FLSA
  • Fraud
  • Gender Discrimination
  • Government Shutdown
  • Health
  • ICE
  • Immigration
  • Immigration Law
  • Immigration Reform
  • Independent Contractor
  • Insurance
  • jones act
  • Leave & Break Rights
  • LGBT
  • Local News
  • Long Term Disability
  • Medical Malpractice
  • medicare
  • Misclassification
  • mississippi river
  • Motorcycle Accident
  • News
  • Non-Compete & Non-Disclosure Agreements
  • Overtime Wages
  • personal injury
  • President Obama
  • Qui Tam
  • Retaliation
  • Semi-Truck Accident
  • Sequential Evaluation Process
  • Severance Agreement
  • Sexual Harassment
  • Short Term Disability
  • slip and fall
  • Small Businesses
  • social security
  • Social Security Administration
  • Social Security Card
  • Social Security Disability
  • Social Security Disability Benefits
  • Social Security FAQs
  • Social Security Number
  • SSDI
  • SSI
  • State Law
  • Taxes
  • Technology
  • Tipped Employees
  • TPPA
  • Trip and Fall
  • Unemployment Benefits
  • Unlawful Presence
  • USCIS
  • veterans
  • Veterans' Benefits
  • Visa
  • Visa Bulletin
  • Wage & Hour
  • Whistleblower
  • Wills
  • Workers' Compensation
  • Workplace Retaliation
  • Wrongful Death
  • Wrongful Termination
Share This Post:

What is a "Subminimum Wage" Exemption, and is it Legal?

Oct 18, 2019 /
Donati Law, PLLC
  • Employment Law /
  • Wage & Hour /

Minimum wage laws establish an hourly pay threshold that is meant to prevent employers in the United States from under compensating their workers. The federal minimum wage rate is $7.25 per hour, but some states have their own laws that allow for higher pay rates. Although adhering to a minimum wage is federally required by law, there are exceptions to those laws known as “subminimum wage” provisions. Employers who qualify for these exceptions are permitted to pay their workers less than minimum wage.

Which Employers Qualify for Subminimum Wage Exemptions?

Subminimum wage exemptions are permitted in cases of student employment, the employment of some people with disabilities, and workers who earn tips.

The student employment exemptions apply to university students who are employed by their school, as well as “student-learners,” such as people who are performing a trade as part of a vocational school program. Educational institutions, in many situations, are also legally permitted to limit the hours that students can work, often at amounts well under 40 hours per week.

According to the United States Department of Labor, “the Fair Labor Standards Act authorizes employers, after receiving a certificate from the Wage and Hour Division, to pay special minimum wages to workers who have disabilities for the work being performed.” Employers can receive a certificate permitting the payment of lower wages in part by proving an employee with disabilities is not as productive as employees without disabilities.

Tipped employees (for example, those in the foodservice industry) are often paid less than minimum wage per hour, with the expectation that their tips will account for the difference.

Why are Subminimum Wage Exemptions in Place?

The Department of Labor states that “Employment at less than the minimum wage is authorized to prevent curtailment of opportunities for employment.” Essentially, the program was created in hopes that it would give companies an incentive to hire students and people with disabilities. Rather than employers being discouraged because of economic limits, they may be able to hire more people if lower wage rates are an option.

Abuses of the System

In theory, subminimum wages allow more people to get jobs. However, the program lets companies pay people much less than they deserve. In the case of workers with disabilities, companies attempt to quantify the difference in productivity by, for example, “test[ing] the worker’s speed at completing a task compared to an able-bodied person,” explained an article from Vox. Sadly, many businesses manipulate the system and lie in their application for exemption, resulting in wages as low as under $1/hour.

Although federal law does allow subminimum wage exemptions for some businesses, being paid less than minimum wage could be a violation of your rights as a worker. If you are being paid less than minimum wage, contact Donati Law, PLLC. Our attorneys can evaluate your case to determine the legality of your pay rate, and begin pursuing a claim if necessary.

To discuss your case during a no-cost consultation, get in touch with our team through our contact form or by calling (901) 209-5500.
Previous Next

Every Client is a Cause We Believe In

To discuss your case with an accomplished attorney who cares, give our firm a call at (901) 209-5500 or fill out the form below.

  • Please enter your name.
  • This isn't a valid email address.
    Please enter your email.
  • This isn't a valid phone number.
    Please enter your phone number.
  • Please make a selection.
  • Please make a selection.
  • Please enter a message.

Recent Posts

  • Donati Law, PLLC Recognized in the 2026 Edition Best Law Firms RankingsNovember 6, 2025
  • "Thank You, Buddy": A Tribute to a Friend and Client, Myron LowerySeptember 30, 2025
  • Donati Law, PLLC Attorneys Recognized in the 32nd Edition of The Best Lawyers in America®August 27, 2025

Most Popular

  • 6 Signs Your Boss Is Gaslighting You at WorkOctober 28, 2022
  • Can the Actions of a Swearing Boss be Considered Abusive Workplace Behavior?December 5, 2023
  • 4 Signs Your Boss Is Taking Advantage of YouMay 2, 2023

A Tradition of Legal Excellence

Our team of professionals seek justice one client at a time, because every client is a cause we believe in. We keep things simple, by consistently showing our dedication not only to the law, but to our clients. Passionate about honoring the law and respecting every client, our firm strives to make the legal changes that are needed to improve the lives of people throughout our community.

donati law icon shield
  • Created from the D & L of Donati Law
  • Resembles the emblem of the medieval Donati family
  • The Donati family originates from Florence, Italy
  • The emblem signifies our fight to protect a neighbor or friend
  • Symbol of our efforts to protect the interests of our clients
donati law logo

Memphis

1545 Union Avenue
Memphis, TN 38104

(901) 209-5500

Memphis

1545 Union Avenue
Memphis, TN 38104
View Map

Phone: (901) 209-5500

Quick Links

  • Home
  • Contact Us
  • Site Map
  • Privacy Policy

Stay Connected

  • Instagram
  • YouTube
  • Facebook
  • Google Business Profile
En Español

Contact Us

Donati Law, PLLC
Memphis Attorneys

1545 Union Avenue
Memphis, TN 38104
View Map

Call Today

(901) 209-5500

Local
https://www.donatilaw.com/

Seeking Justice One Client at a Time

Contact Us Now
Internet Marketing Experts The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
© All Rights Reserved.
Powered by Scorpion