Federal Minimum Wage in the United States

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FAQ

A common question that many US citizens ask is, “how much is

federal minimum wage?”

Minimum Wage

The Federal Labor Standards Act (FLSA) says that the federal

minimum wage is $7.25 per hour.

Minimum WageThis has been in effect since July 24, 2009. In many

states, citizens are entitled to both the state and federal minimum wage laws- meaning the employee is entitled to the higher minimum wage. That being said, there are

also numerous exceptions apply under certain circumstances such as to workers with disabilities, full-time students, youth under the age of 20 and tipped

employees.

Tipped EmployeesEmployees that fall under the “tipped employees”

category often wonder how their minimum wage differs from other employees who are not tipped. An employer

can not pay an employee less than $2.13 an hour in direct wages if that amount plus the tips received equals at the least the federal minimum wage amount. On the

other hand, if an employee’s tips combined with the direct wages received do not equal the federal minimum wage by the hour, then the employer has to make up the

difference.

People Under 20 Years Old

For people under the age of 20, there is also a different minimum wage for them. In the first

consecutive 90 days working for the employer- the minimum wage is $4.25. After those 90 days

are over, the employee is allowed to receive $7.25 per hours for minimum wage.

Full-Time StudentsIn addition, there are also exceptions for full-time

students. This applies to students who work in retail or service stores, agriculture, or college

and universities. The employer that hires the full-time students can receive a certificate from the Department of Labor that allows the student to

be paid not less than 85% of the minimum wage.

Full-Time StudentsIn addition, the certificate also limits the number

of hours the student works during the school year to no more than 8 hours a day and 20 hours

a week. The certificate also requires the employee to follow all child labor laws and once

the student graduates, they are allowed to receive $7.25 per hour.

Federal Labor Standards Act

To make sure everyone receives the correct amount of minimum wage they are allotted, the

FLSA states that minimum wage applies to employees of enterprises that have an annual

gross of at least $500,000.