Employment » Wage and Hour » Federal Minimum Wage Law

Federal Minimum Wage Law

What is the Federal Minimum Wage?

Federal minimum wage requirements set the minimum amount employers can pay hourly workers in the United States. The federal minimum hourly wage is $7.25 an hour as of July 24, 2009.

The federal minimum wage requirements are contained in the Fair Labor Standards Act (FLSA).

State vs. federal minimum wage

Many states have their own minimum wage laws, which may be higher than the federal minimum wage. For instance, the California minimum wage is currently $9.00 an hour. If an employee is covered by both federal and state minumum wage laws, he or she is entitled to the higher minimum wage.

Tipped employees’ rights

Under federal law, employers can generally pay employees who earn tips such as waiters, valets, and bartenders, as little as $2.13 an hour, provided the employee’s tips plus the employer’s contribution add up to the federal hourly minimum wage. Any difference must be covered by the employer.

States may have different laws for tipped employees. For instance, California does not permit employers to use employee’s tips toward their minimum wage requirements.

Are you being paid less than federal minimum wage?

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