Legal Definitions - wage

The term wage refers to the payment an individual receives for their labor or services, typically from an employer. This compensation is often calculated based on the amount of time worked (e.g., hourly) or the quantity of work produced (e.g., per item). Wages are a comprehensive category that includes not only an employee's regular base pay but also other forms of remuneration such as commissions, bonuses, vacation pay, and even the monetary value of benefits like housing or meals provided by the employer. Employers are generally required to withhold income taxes and other deductions from wages before payment.

• Example 1: Hourly Retail Associate

  Maria works part-time at a local bookstore, earning $15 per hour. Each week, her employer calculates her total pay based on the number of hours she clocked in. On top of her hourly earnings, she also receives a small holiday bonus at the end of the year.

  How it illustrates the term: Maria's hourly earnings are a direct form of wage based on "time worked." The holiday bonus further demonstrates that wages encompass various forms of compensation beyond just regular hourly pay.

• Example 2: Commission-Based Sales Professional

  David is a real estate agent who earns a percentage of the sale price for every property he helps a client buy or sell. While he doesn't have a fixed hourly rate, his income is directly tied to his output and the services he provides.

  How it illustrates the term: David's commission payments are a form of wage based on "quantity produced" or output. This shows that wages are not exclusively hourly or salaried but can also be performance-based.

• Example 3: Live-in Caregiver with Benefits

  Sarah works as a live-in caregiver for an elderly client. In addition to a weekly cash payment, her employer provides her with free room and board in the client's home.

  How it illustrates the term: Sarah's weekly cash payment is a clear wage. Furthermore, the "reasonable value of board, lodging" (free room and board) provided by her employer is also considered part of her overall wages, as it is a benefit received for her personal services.