The minimum wage is the lowest hourly wage an employer can legally pay their employees. In the United States, the federal minimum wage is currently set at $7.25 per hour. This rate applies to covered, non-exempt employees under the Fair Labor Standards Act (FLSA).
However, it’s important to know that the federal minimum wage is not the only wage law in play. Many states also have their own minimum wage laws, and these state rates can be higher than the federal rate. In situations where both federal and state minimum wage laws apply, employees are entitled to the higher of the two. This means that if a state has set its minimum wage at $10 per hour, for example, employees in that state must be paid at least $10 per hour, even though the federal minimum wage is lower.
The Fair Labor Standards Act (FLSA) is the key piece of legislation that establishes the federal minimum wage. It’s enforced and administered by the Wage and Hour Division of the U.S. Department of Labor. While the FLSA mandates minimum wage, it generally doesn’t handle claims for wages beyond the legally required minimum. For issues regarding promised wages or commissions exceeding the minimum, some states have their own laws and procedures for employees to file claims.
Therefore, understanding minimum wage means recognizing both the federal baseline and the potential for higher minimum wage standards at the state level. Employees should be aware of both federal and their specific state’s minimum wage laws to ensure they are being paid correctly.
