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What is the minimum wage?

The minimum wage is the minimum hourly wage an employer can pay an employee. Today, the federal minimum wage is $7.25. In some states and cities, the minimum wage is higher.

The federal minimum wage is established by the Fair Labor Standards Act (FLSA), which also sets standards for overtime pay, recordkeeping, and child labor.

For hourly employees, the minimum wage is $7.25. For tipped employees, employers must pay a direct wage of at least $2.13 per hour if they claim a tip credit. The Act exempts some employees from its overtime pay and minimum wage provisions, including salaried employees that meet certain criteria.

Some states have set a higher minimum wage (e.g., $10.50 in Washington DC) with which local employers must comply.

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