Legal Definitions - wages

Wages refer to the compensation, typically monetary, paid by an employer to an employee for work or services performed. This payment is usually calculated on an hourly, daily, or piece-rate basis and is often disbursed periodically, such as weekly or bi-weekly. Legally, wages encompass not only the base pay but can also include commissions, bonuses, and other forms of remuneration for labor.

• Example 1: Maria works as a barista at a coffee shop. She earns $15 per hour and works 30 hours a week. Every Friday, her employer deposits $450 (before taxes and deductions) into her bank account. This $450 represents Maria's wages for that week's work.

  Explanation: This example illustrates wages as direct hourly compensation for labor, paid on a regular, periodic basis, which is a common understanding of the term.

• Example 2: A landscaping company hires seasonal workers to mow lawns and maintain gardens. These workers are paid $20 for each lawn they complete. If a worker completes 50 lawns in a week, their total payment of $1,000 constitutes their wages for that period.

  Explanation: Here, wages are calculated on a "piece-rate" basis, meaning compensation is tied to the amount of work completed rather than hours worked. Despite the different calculation method, it still falls under the legal definition of wages for services rendered.

• Example 3: David is a truck driver who is paid a base hourly rate plus a bonus for every delivery made on time. Last month, his base pay was $3,000, and he earned an additional $500 in on-time delivery bonuses. The total $3,500 he received from his employer represents his gross wages for the month.

  Explanation: This example demonstrates that wages can include various components beyond just a base hourly or fixed rate, such as performance-based bonuses, all contributing to the total compensation for work performed.