Minimum Wage in the United States: Federal and State Framework
The federal government of the United States has determined that there is a lowest wage rate that covered employees are legally allowed to earn, and that wage rate is called minimum wage. Such laws owe their existence from ensuring that an employee does not earn an unreasonably or illegally low wage.
In contrast to countries where the national minimum rate applies, there are two minimum rates in the United States. The minimum rates of wages are differentiated on a federal and state basis, with several statutes layered on top of one another. An employer must pay the higher of the two rates.
Federal minimum wage law
The federal minimum wage is regulated under the umbrella of the Fair Labor Standards Act or FLSA, which is the primary federal body that sets standards nationwide for minimum wage. It also takes care of ancillary considerations such as overtime pay, recordkeeping, and youth employment.
The FLSA is both administered and enforced by the U.S. Department of Labor, through its Wage and Hour Division which you can find on their web page above. The official federal wage rules, coverage details, and enforcement guidance come directly from this authority.
State minimum wage authority
Individuals states have the legal right to determine their own rates of minimum wage. Many states have passed wage laws above the minimum federal rate, reflecting increased living costs or local policy priority.
State minimum wages are set by:
- State labor codes or wage acts
- State legislatures or wage boards
- Administrative agencies, such as state labour departments
In some states, minimum wages are indexed to inflation or automatically adjusted each year.
References of Authority include:
- State labour departments
- State wage and hour divisions
- State legislative codes and statutes
Local minimum wage laws
In addition to federal and state laws, certain cities and counties in the United States have enacted local minimum wage ordinances. Where valid, these local laws can set higher wage floors than state or federal levels.
Local wage laws are typically issued by:
- City councils
- County governments
- Municipal labour offices
Coverage and exceptions
Minimum wage laws in the United States do not apply uniformly to all workers. Coverage depends on factors such as:
- Type of employment
- Business size and revenue
- Industry classification
- Worker category (for example, tipped employees or trainees)
Federal exemptions and definitions are outlined under the Fair Labor Standards Act and related Department of Labor regulations.
Enforcement and compliance
Minimum wage enforcement is handled by:
- The U.S. Department of Labor at the federal level
- State labour agencies for state wage laws
- Local authorities where applicable
Employers who fail to comply may face back-pay orders, fines, or legal action.
FAQs
1. What is the minimum wage in the United States?
The minimum wage rate is defined as the least paid hourly wage rate for which an individual is compensated. There are different rates for which minimum wage is set.
2. Is There a Uniform Minimum Wage for Every US State?
No, there is a federally mandated minimum, and states or cities can pay more for those types of roles.
3. What is the federal law on minimum wages?
These federal minimum wage laws are regulated by the Fair Labor Standards Act.
4. Who is responsible for enforcing the minimum wage laws in the US?
The enforcement authority for federal minimum wage laws is the United States Department of Labor. The enforcement authority with respect to state and local minimum wage laws is the state or local administrator.
5. Must employers adhere to state or federal wages?
Employers have the responsibility to abide by the law that requires the higher wage rate for the employee.
6. Is every worker protected by minimum wage legislation?
No. Certain employees are exempt from such requirements and/or eligible on special conditions based on their type of work.
7. Are Minimum Wages Determined by Cities?
Yes. Some states allow a higher minimum wage set by either a city or a county.
8. Where does the government derive the regulation concerning the minimum wage?
Regulations regarding these laws are established by the U.S. Department of Labor and relevant labor authorities.
