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Definition of Minimum Wage

What Is the Minimum Wage Nationally?

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Minimum Wage Laws Vary from State to State - Know Your Requirements

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Definition:

The Federal minimum wage is the minimum amount of money that an employer can pay a covered nonexempt employee for an hour worked. The Federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. Check your state for its minimum wage requirements. Where an employee is subject to both the state and Federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

The Federal minimum wage is currently $7.25 per hour. But, many states require employers to pay more than that — and a number of states have increases scheduled in 2014. See if you state is one of them.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

Congress periodically raises the minimum wage, so make sure that you are paying the current and appropriate wage by checking with your state and Federal departments of labor.

You may also be interested in: overtime pay.

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