Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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Is the federal or state minimum wage applicable to the workplace?

Federal wage
State wage
Whatever is larger
Whatever is smaller

The correct answer is: Whatever is larger

The applicability of minimum wage laws in the workplace hinges on the comparison between federal and state minimum wage rates. When determining what wage must be paid to employees, the governing principle is that employers are required to adhere to the law that provides the greater benefit to employees. This means if the state minimum wage is higher than the federal minimum wage, then the state wage applies, ensuring that workers receive the maximum possible earnings. Conversely, if the state wage is lower than the federal wage, then the federal wage must be applied. This framework is designed to protect workers and ensure that they are not paid less than the amount deemed acceptable on a national level while also allowing states the autonomy to set higher standards if they choose. Therefore, the correct approach is indeed to follow the applicable wage rates and adhere to the one that is larger to promote fair compensation in the workplace.