TheJobsMarket
Minimum Wage

Youth, Training and Learner Wages

The youth wage lasts ninety days. Not ninety working days — ninety days on the calendar, running whether you are rostered or not.

Short answer

Federal law allows employers to pay employees under twenty a training wage of $4.25 an hour for the first ninety consecutive calendar days of employment. The clock runs on the calendar rather than on days worked, so a part-time worker burns through it just as fast as a full-time one, and it ends the moment the employee turns twenty regardless of how much time remains. Many states do not permit it at all, and where a state minimum applies the state figure governs.

The ninety-day rule is the whole thing

The federal youth wage is $4.25 an hour and it applies to employees under the age of twenty for the first ninety consecutive calendar days after they are first employed. Almost everything people get wrong about this provision comes from misreading two words in that sentence: consecutive calendar. They are doing a great deal of work and they are easy to skim past. Read them carefully and the rest of the rule follows.

The clock is not ninety shifts, or ninety working days, or ninety days on which the employee actually did something. It starts on the first day of employment and runs continuously from there, through weekends, through weeks with no shifts at all, through a fortnight when the business was shut. A student working two shifts a week uses up the ninety days at exactly the same rate as somebody working five, which means the provision is worth far less to a part-time worker than the headline suggests.

The second limit is age, and it is absolute. The moment the employee turns twenty the youth wage ends, whatever the calendar says about the remaining days. Somebody hired at nineteen years and eleven months gets the youth rate for one month rather than three, and no part of the ninety days survives the birthday.

What it does not allow

It does not allow an employer to displace existing workers in order to take advantage of it. Cutting hours, laying somebody off, or reducing an existing employee’s overtime so that youth-wage staff can be hired instead is prohibited outright. That prohibition is the main thing standing between this provision and obvious abuse, and it is the part employers relying on the youth wage most need to understand.

It also does not restart under any circumstances. An employer cannot end the ninety days, briefly separate the employee, rehire them and begin a fresh ninety. The period runs from first employment with that employer, so a summer worker returning the following summer does not get a second ninety days from the same business.

And it does not stack or taper into anything else. When the ninety days end, or the employee turns twenty, the full applicable minimum applies immediately — not a transitional rate, not a partial step. The change should show up on the very next payslip.

Student learners and full-time students are separate things

Two other subminimum provisions get regularly confused with the youth wage, and they are worth telling apart. They work on a different basis entirely: each requires the employer to hold a certificate rather than simply electing to use the rate. That single difference changes who can use them and how you check whether it is being done properly.

The student learner certificate covers students aged sixteen and over who are enrolled in a vocational education program and working in the occupation their course relates to. It permits payment at a proportion of the minimum wage while that connection holds. The full-time student certificate is different again: it applies to students working part-time in retail, service, agriculture or their own institution, at a proportion of the minimum, with limits on hours during term time. Neither is available simply because somebody happens to be young or in education.

The practical distinction that matters to you is the certificate. The youth wage requires nothing but the employee’s age and start date; these two require the employer to have applied for and obtained authorization. If somebody is being paid a student rate, the employer should be able to say which certificate they hold, and the Department of Labor publishes lists.

State law frequently overrides all of it

A great many states do not permit a youth or training wage at all. Where a state minimum applies and the state has made no such provision, the state figure governs from day one and there is no ninety-day period to count. That is the most important practical point in this whole article. It means the federal $4.25 is simply irrelevant to a large share of young workers, and checking your own state should come before anything else here.

Other states permit something similar but on their own terms entirely. A shorter period, a higher rate, a narrower age band, or a requirement that the employer demonstrate genuine training is actually taking place rather than merely asserting it. Reading the federal provision and assuming it describes your situation is therefore likely to be wrong in one direction or another. The state labor department page settles it in a couple of minutes and is worth the couple of minutes.

Where both apply, the more protective rule wins, as it does everywhere else in wage law. So the youth wage never reduces a state minimum. It only ever operates inside the space a state has chosen to leave open, which in a growing number of states is no space at all.

What it is actually worth, and to whom

Run the arithmetic before deciding how much this matters. Ninety days is roughly three months, and at twenty hours a week a part-time worker will have worked about 260 hours in that period. The difference between $4.25 and $7.25 across those hours is around $780, and against a higher state minimum it would be considerably more.

That is a meaningful sum to the person earning it and a modest one to most employers, which is roughly the shape of the policy argument around the whole provision. It is also why the displacement prohibition matters as much as it does. Without it, the incentive to churn staff every ninety days would be substantial and entirely predictable, and the provision would function as a subsidy for turnover rather than for training.

The two questions worth asking

If you are under twenty and being paid a training rate, ask two things. First, what is my ninety-day end date — a specific calendar date rather than a rough sense, because it is fixed on your first day and does not move. Second, does my state permit this at all, which you can answer yourself without asking anybody.

Then put the end date in a calendar and check the payslip covering the first day after it. A rate that fails to step up on time is one of the more common errors in this whole area. It is usually a payroll system that was never told about the date rather than a decision anybody consciously made, which means it gets corrected quickly once somebody points at the specific day.

This is general information about how the provision works rather than legal advice about your pay. State rules differ substantially and are the more likely to be decisive, so your state labor agency is the place to confirm — and they will answer a question without any obligation to file anything.

Common questions

How long does the youth wage last?

Ninety consecutive calendar days from the first day of employment — not ninety working days. It runs through weekends and through weeks with no shifts at all.

Does part-time work make it last longer?

No. A student working two shifts a week uses the ninety days at exactly the same rate as somebody working five, which makes the provision worth much less to part-time workers.

What happens when I turn twenty?

It ends immediately, whatever the calendar says about remaining days. Somebody hired at nineteen years and eleven months gets one month rather than three.

Can an employer restart the ninety days?

No. The period runs from first employment with that employer, so separating and rehiring does not begin a fresh ninety.

Can an employer cut hours to hire youth-wage staff?

No. Displacing existing workers — cutting hours, laying off, reducing overtime — to take advantage of it is prohibited, and that prohibition is what keeps the provision from obvious abuse.

How is this different from a student wage?

Student learner and full-time student rates require the employer to hold a certificate. The youth wage requires nothing but the employee's age and start date.

Does my state allow it?

Many do not. Where a state minimum applies without such a provision, the state figure governs from day one and the federal $4.25 is irrelevant to you.

What is it worth?

At twenty hours a week across ninety days — about 260 hours — the gap between $4.25 and $7.25 is roughly $780, and considerably more against a higher state minimum.

AS

Andre Skeete

People Operations and HR compliance

Andre Skeete works in People Operations and HR compliance, where the day job is reading a statute and turning it into a policy an employer can actually follow — handbooks, classification, leave and pay practice. He writes the pages on what the law requires of an employer, because that is the material he handles professionally.

He is not a lawyer and nothing here is legal advice. These pages describe what a statute or regulation says and link you to the instrument itself so you can read it.

All articles by Andre Skeete →