Student Employees: Minimum Wage Rights At Universities

The question of whether universities have to pay their student employees minimum wage is a complex one. While federal law in the US mandates that employees must be paid a minimum wage, there are legal loopholes that allow colleges to pay their full-time student workers less than this. A provision under the Federal Fair Labor Standards Act (FLSA) lets nonprofit educational organisations apply for a certificate from the Department of Labor to hire student workers for less than minimum wage. This has been deemed immoral by some, as many students who take on-campus jobs are from low-income families. However, other universities have chosen to increase their minimum wage above what is required by their states and the federal government, with some doubling the minimum wage.

Universities can apply for a certificate to pay student workers less than minimum wage

In the United States, a provision under the Federal Fair Labor Standards Act (FLSA) allows universities to apply for a certificate from the Department of Labor to pay student workers less than the minimum wage. This exemption, also known as the "subminimum wage", authorises universities to pay full-time students a lower wage—at least 75% of the federal minimum wage or a percentage of an applicable state minimum wage if it's higher—for on-campus jobs.

The "subminimum wage" law is applicable in many states, including Massachusetts, Connecticut, New Jersey, Virginia, and New York. Under this law, students who work for universities are eligible to receive less than the state minimum wage when working on campus. The number of hours students can work is also capped, usually at 20 hours per week.

The "subminimum wage" law does not apply to students employed through a financial aid work-study program called the Free Application for Federal Student Aid (FAFSA). These students must earn at least the federal minimum wage and have additional stipulations regarding their hours that other students employed on campus do not.

The "subminimum wage" law also does not apply to all universities. For example, some universities in California pay their student employees the state minimum wage or higher. Additionally, some universities in Illinois pay their student workers below the minimum wage, but it is unclear if this is due to the "subminimum wage" law or another reason.

Students can work a maximum of 20 hours a week

In the US, this rule applies to international students on a full-time study visa, and they can work up to 20 hours per week during term time and full-time during holidays. This includes both paid and unpaid work. International students in the UK have similar restrictions, with a maximum of 20 hours per week during term time and up to 40 hours per week during holidays.

Some universities in the US may also place conditions on financial aid recipients, limiting the number of hours they can work per week. For example, the University of Arizona allows student workers to work up to 25 hours per week during the fall and spring semesters, and up to 35 hours per week during the summer and winter sessions and spring break.

It's important to note that the rules regarding working hours may vary for different categories of students, such as international students or PhD students, and understanding these regulations is crucial for a successful and rewarding study experience.

Students can earn their maximum financial allotment

Additionally, paying students a subminimum wage can create a false economy where students are forced to work more hours to make the same amount of money they could have made working fewer hours at a higher wage. This can lead to overwork and burnout, which can negatively impact a student's academic performance and overall well-being.

Furthermore, many students who qualify for work-study are low-income and rely on this income to pay for their expenses. Paying them a subminimum wage can make it difficult for them to cover their basic needs, such as laundry, prescription medications, and other costs. This can create unnecessary financial stress and hinder their academic performance.

It is important to note that there are legal and ethical implications to paying students subminimum wages. While there may be loopholes that allow universities to pay students less than the minimum wage, it does not mean that they should take advantage of them. Universities should ensure that they are complying with all applicable laws and regulations regarding minimum wage and fair labour practices.

Moreover, paying students a fair and competitive wage can help attract talented student workers and improve retention rates. It can also foster a sense of value and respect for the students' time and contributions to the university. Ultimately, paying students their maximum financial allotment in fewer hours can benefit both the students and the university.

Students are exempt from the minimum wage if their work is part of their education

Students are often a source of cheap labour for universities, and many universities pay their student workers less than the minimum wage. This is possible due to a legal loophole: a provision under the Federal Fair Labor Standards Act (FLSA) allows nonprofit educational organisations to apply for a certificate from the Department of Labor to hire student workers for less than minimum wage. This exemption, also known as "subminimum wage", authorises employers to pay full-time students a lower wage—at least 75% of the federal minimum wage of $7.25 or a percentage of an applicable state minimum wage if it's higher—for on-campus jobs.

The subminimum wage rate varies by university and state, although all state minimum wages must be at least equal to the federal amount. For example, at Skidmore College in Saratoga Springs, student workers can earn anywhere between $9.75 and $10.50 per hour depending on their experience, skill level, and supervision. In New York, where Skidmore is located, the minimum wage is $11.10 per hour, but Skidmore's wages are still considered legal.

Some states, including New York, allow universities to apply for a subminimum wage certificate for student employees, enabling them to pay less than the federal or state minimum wage. However, this practice has been criticised as exploitative and unfair, especially for low-income students who rely on these jobs for financial support.

It's important to note that students employed through a financial aid work-study program, such as the Free Application for Federal Student Aid (FAFSA), must earn at least the federal minimum wage and have additional stipulations regarding their working hours. Additionally, universities in states that have passed laws to increase their minimum wage above the federal level, such as California and Washington, must comply with these new laws.

While universities have different philosophies on student worker wages, some institutions have voluntarily chosen to increase their minimum wage for students and staff to promote equitable pay for all employees.

Students are entitled to rest and meal breaks

Federal rest break laws require employers to pay employees for breaks lasting 20 minutes or less. This is because the Fair Labor Standards Act (FLSA) has determined that employees are not able to freely use the break time for their own purposes if the break is 20 minutes or less. For breaks lasting longer than 20 minutes, the FLSA does not require employers to pay employees as long as they are not required to work during the break.

Additionally, employers must also allow employees to take paid restroom breaks, even if they are not explicitly addressed in an employer's policy. This is to protect the health and hygiene of the employee.

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