Federal Minimum Wage

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Title: Navigating Wage Standards: The Federal Minimum Wage

Understanding the Federal Minimum Wage

The federal minimum wage, established by the Fair Labor Standards Act (FLSA), signifies the lowest hourly wage an employer can pay nonexempt workers in the United States. As of July 24, 2009, the set federal minimum wage is $7.25 per hour for nonexempt U.S. workers. It’s important to note that several states surpass this federal mandate with their own minimum wage laws.

State vs. Federal Minimum Wage

When state and federal minimum wages differ, the higher wage takes precedence. For instance, in Washington state, hourly workers subject to the FLSA receive $13.50 per hour. In states lacking a specified minimum wage, such as Alabama, employers under the FLSA must adhere to the federal minimum wage.

For additional details, refer to our glossary entry on minimum wage.

Exemptions from the Federal Minimum Wage

Certain categories of workers are exempt from the federal minimum wage requirement. These exemptions include:

  1. Babysitters
  2. Farm workers on small farms
  3. Seasonal and recreational workers
  4. Newspaper delivery workers
  5. Workers with disabilities
  6. And others

For precise information on exempted workers, consult the Fair Labor Standards Act (FLSA) and the accompanying list of exempt categories when determining employee compensation.

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