Minimum wage in the United States
Minimum wage in the United States is the lowest hourly wage that employers may legally pay most workers. It is governed by both federal and state laws.
Federal Minimum Wage
The federal minimum wage is set by the Fair Labor Standards Act (FLSA). As of 2025, the federal minimum wage remains at $7.25 per hour, unchanged since 2009.
State Variation
Many states and local governments set higher minimum wages. For example:
- California – $16.50/hour
- New York – $16.50/hour
- Texas – $7.25/hour (federal level)
Tipped Employees
The federal minimum wage for tipped employees is $2.13 per hour, provided that tips bring total earnings to at least $7.25/hour.
Inflation and Living Wage Debate
There is ongoing debate about adjusting the minimum wage to reflect the cost of living. Several states have implemented automatic increases tied to inflation.
Government Resources
FAQs
Q: What is the highest state minimum wage in 2025? A: California leads with $16/hour.
Q: Does every worker qualify? A: No, exemptions apply to certain workers such as interns, small business employees, and seasonal workers.
Q: Are states allowed to set lower than federal rates? A: No, states may set higher but not lower than the federal rate.