Federal Minimum Wage

What is Federal Minimum Wage?

The federal minimum wage is the baseline hourly rate set by the US government under the Fair Labor Standards Act (FLSA). Employers covered by the FLSA must pay non-exempt employees at least this rate for all hours worked. As of the most recent update, the federal minimum wage is $7.25 per hour, a level that has remained unchanged since 2009.

Why Federal Minimum Wage Matters

Many states and localities have enacted their own minimum wage laws with rates higher than the federal level. When both federal and state laws apply, the employee is entitled to the higher rate. HR professionals must stay current with applicable minimum wage requirements to ensure payroll compliance across all jurisdictions where their organisation operates.