HOW THE MINIMUM WAGE IS AFFECTED BY REQUIRED DRESS CODES
Some employers forget that minimum wage laws do not allow employers to charge employees for the purchase or rental of the uniforms and possibly cleaning to the extent it causes an employee’s pay to fall below minimum wage or statutory overtime. The situation particularly comes into play where employers charge employees a lump sum for uniforms rather than spreading the cost over several pay periods and for tipped employees who receive the minimum tipped amount of $2.13 an hour. However, the question remains as to what is a required company uniform as opposed to basic street clothing.
The U.S. Department of Labor (DOL) has general guidelines as to whether certain types of dress are considered uniforms. In general, where the employer requires a specific type and style of clothing to be worn at work, such as, a tuxedo or a shirt and blouse or jacket of a specific or distinctive style, color or quality, this clothing would be considered a uniform for purposes of the minimum wage laws. If the clothing has the employer’s logo is on it, Wage and Hour will call that clothing a uniform. On the other hand, if the clothing is a general type of basic street clothing with variations in details of dress, that is not considered a uniform for purpose of applying the minimum wage and overtime laws.
Unless the uniforms are “wash and wear” material that may be routinely washed and dried with other personal garments and do not require ironing or other special treatment, the employer must pay minimum wage employees one hour of minimum wage to cover cleaning the uniforms.
If the employer pays more than minimum wage, the employer may deduct the cost of the uniforms from the employee’s pay so long as the deduction does not reduce the pay below minimum wages or come from overtime pay. If the employer is paying $.05 an hour more than minimum wage, the employer can deduct $.05 times the hours worked that week up to 40 hours.
Employers need also to be mindful of the potential application of certain state laws. Some states, such as California, require employers to pay the cost of all required uniforms, not just those that affect the minimum wage or statutory overtime.