Federal Minimum Wage

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What is the Federal Minimum Wage? 

The federal minimum wage refers to the lowest wage that an employer can legally pay a non-exempt employee who is paid by the hour. The provisions for federal minimum wage are indicated in the Fair Labor Standards Act (FLSA). 

The federal minimum wage as of 2021 is $7.25 per hour. This figure was set on July 24, 2009. Many U.S. states have minimum wage laws. In some cases, an employee can be covered by both federal and state minimum wage laws. If there is an overlap, the rule of thumb is that the employer must pay the minimum wage that is higher and more favorable to the employee. 

Who monitors and ensures that workers are paid the Federal Minimum Wage?

The Wage and Hour Division of the U.S. Department of Labor takes charge of enforcing the federal minimum wage law. 

How can the Federal Minimum Wage increase?

Increasing the federal minimum wage entails the U.S. Congress passing a bill to increase the federal minimum wage which the President must sign into law. 

Does the federal minimum wage apply to all? 

The following are workers who are exempt from the federal minimum wage: 

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