what is federal minimum wage

The federal minimum wage in the United States is $7.25 per hour. This rate applies to covered nonexempt workers, and the minimum wage for employees who receive tips is $2.13 per hour, with the requirement that the amount of tips plus the $2.13 must reach at least $7.25 per hour. If not, the employer must pay to make up the difference. Its important to note that some states and cities have their own minimum wage rates, and if the federal and local government minimum wages differ, the higher wage rate applies. As of 2023, 30 states and Washington D.C. have minimum wages above the federal minimum wage of $7.25 per hour.