The increase in the minimum wage from $4.25 to $4.75/hour went into effect October 1. On September 1, 1997, the minimum wage rate will increase further to $5.15/hour.

Farmers who pay wages on 500 or more "man days" in any quarter of the previous year are required to pay the minimum wage. However, note that a "man day" is defined as one or more hours of work per person per day. Thus, if a farmer hired five people to work one hour each on any given day, the total would be five man days.

In general, it requires 5.5 to 7.5 full time employee equivalents for farmers to fall under minimum wage regulations. Producers who approach this payroll size with heavy seasonal labor needs, or those like dairymen who must hire weekend milkers should check records closely to see if minimum wage regulations apply.

Of course, the higher minimum wage will probably have spillover effects on the low-end scale of the labor market and thus may well force up wages that farmers have to pay to attract workers. It should be noted though, that current prevailing farm wage rates in the southeast (AL, GA, SC) average $5.85/hour, well above the new minimum wage. Bona fide farmers of any size remain exempt from paying overtime.

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1996 by Department of Agricultural and Applied Economics, Clemson University, Clemson, SC