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Why are there Compensation Observations Below the Minimum Wage?

In some cases, a returned compensation observation might be below that region’s minimum wage. Let’s take a look at our compensation methodology to understand why:

Compensation data is built on Emsi’s compensation model, which takes into account Occupational Employment Survey (OES) wage data, Emsi profile data, and individual states’ and cities’ minimum wage laws. Each of these sources have different collection and release timelines that affect the compensation model.

The OES is a three-year rolling survey with an additional year’s lag before the data is published. Emsi also incorporates profile data that contains wage information older than the current minimum wage laws. Because of these lags, it is possible to see wage results that are below the state’s or cities’ minimum wage.

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Submit a Question

Let us know what specific questions we can help you with (we may even add your question to our knowledge base).