Since July 24, 2009, the federal minimum wage has been $7.25 per hour. That means in every state in the United States, employers must pay workers at least $7.25 per hour. In Washington, D.C., it means employers must pay $8.25 per hour because the law there dictates they must pay $1 more than minimum wage.

The $7.25 federal minimum wage amounts to about $1,200 per month — before taxes. Taxes account for an average of 24 percent, depending on the area, which leaves the federal minimum wage earner with less than $1,000 per months to take home. Of course, that’s only for people who work 40 hours per week. It’s no wonder so many families end up needing faxless payday loans to help them get by.

How low can you go?

Despite the fact that the federal minimum wage is not a living wage for anyone who pays rent, some states such as Colorado want to pay less than the federal minimum wage. Colorado, which bases its minimum wage on inflation, says it wants to lower its minimum wage to $7.24 an hour. Of course, it can’t legally do that, but it speaks volumes about the economy.

Many states already have minimum wages higher than the federal minimum wage, and in states where the minimum wage is based on inflation, it could mean the workers in those states would take pay cuts if the state minimum wage is lowered. The idea of a lower minimum wage is especially catastrophic now, when so many unemployed workers are being forced to take low-paying jobs. More people are struggling to get by on minimum wage, so that many more people would be affected if states lower their minimum wages.

When employers don’t pay federal minimum wage

Lucky for Colorado workers and any other states contemplating lowering their minimum wage, they can’t. Furthermore, businesses who try to skirt the federal minimum wage face stiff penalties, as a couple of businesses recently found out.

Southern California Maid Service and Carpet Cleaning Inc. must pay employees $3.5 million in back wages by Nov. 12, a judge ruled today. The owners also spent five days in jail. A site called 7th Space reports:

The owners of a Southland residential cleaning service were taken into custody and later released after failing to comply with a court order directing payment of $3.5 million in back wages, plus interest, fines and liquidated damages to at least 385 workers.

Lost in translation

The owners of Tasty Buffet in Memphis also are being fined for failing to pay workers minimum wage. The fine has doubled to $459,658 after the owners failed to pay the original fine.

The owners are contesting this, saying they provided food and lodging as well as wages for many employees. They also say they didn’t understand the labor laws.

Federal minimum wage exceptions

It is true that in certain cases employers don’t have to pay the federal minimum wage. For example, employers aren’t required to pay commissioned sales employees the federal minimum wage.  Other exemptions include companions for the elderly, workers with disabilities, newspaper deliverers, farm workers and fishermen.

In some states, food service workers who make tips also are paid less than the federal minimum wage, though that is becoming less common.

FedEx layoffs went through today after a warning about two weeks ago that they were coming. In total 1,000 workers worldwide were affected. About half of those were in Memphis, Tenn., where the company is based.

Do the math

The layoffs are part of FedEx’s effort to cut $1 billion in annual spending. Last month FedEx reported that profits had plunged 75 percent in the past year. FedEx says in addition to the layoffs, some foreign employees  will get pay cuts and there will be other changes in work hours and personnel.

Who got the ax?

The workers who were laid off today were salaried, exempt employees. No hourly workers were affected.

“We have begun to reduce the workforce. It is consistent with what we previously announced. We’ve had to reduce our network to match volumes and customer needs. It was a very tough decision. It was unavoidable because of the global recession,” FedEx spokesman Jess Bunn said.

Door prizes

All laid off FedEx employees will receive severance packages and job counseling. This should help people who might otherwise need payday loans. Also, if any FedEx jobs are restored in the future, laid off workers will have the opportunity to apply before the jobs are advertised.

Past sacrifices

In December, FedEx cut the pay of about 14,000 Memphis workers. At that time the company also ended its 401k matching program.

Seattle sliding

Elsewhere in the country, Seattle, Washington, seems to have had a particularly rough couple of weeks. Several different technology companies laid off workers or shut down plants this week.

Battery-maker Exide Technologies shut down a facility and let go all 43 workers. Bellevue-based Expedia travel web site did another round of layoffs recently, but didn’t disclose the number of employees affected. Radio tech firm Impinj laid off 23 workers two weeks ago. Sun Microsystems announced 24 layoffs, effective May 30. And Seattle-based technology giant Microsoft warned of more layoffs to come.