Federal Minimum Wage for 2016, 2017
Contents :: Federal Minimum Wage
The Federal minimum wage was last changed in 2008, when it was raised $0.70 from $6.55 to $7.25. Federal minimum wage rate is linked to a Customer Price Index, which is intended to raise the rate along with inflation. The current minimum wage rate is re-evaluated yearly based on these values.
The Federal Minimum Wage of $7.25 per hour is the minimum hourly pay any non-exempt worker in the United States can be paid for his work. The Federal Minimum Wage is applicable nationwide, and overrides any state laws that provide a lower minimum wage rate to ensure that the local minimum wage in all states is at least $7.25 per hour. The Federal Minimum Wage was last updated in 2009.
Federal employers may not pay you under $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.
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All Federal employers must display an approved Federal minimum wage poster in a prominent place to inform employees about the minimum wage and their worker's rights under Federal labor law.
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Federal Minimum Wage & Labor Law Posters
All employers are required under the Fair Labor Standards Act to display several mandatory Federal labor law posters in a prominent place to inform employees about the minimum wage and their worker's rights under Federal labor law. Many states also require their own mandatory posters be displayed as well. Failure to display a required labor law poster in the workplace can result in severe fines.
The Federal minimum wage poster, and additional required Federal labor law posters, are also available on the Federal labor law posters download page.
Federal Overtime Minimum Wage
All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage (learn more about Federal overtime pay). Some states require workers who work over a certain number of daily hours to be eligible for this overtime rate as well (Federal law does not specify a daily overtime limit).
The FLSA guarantees all Federal employees adequate overtime compensation for all qualifying overtime hours worked. If your employer does not pay adequate overtime wages, you can file an unpaid overtime claim with the Federal Department of Labor.
Federal Minimum Wage Exemptions
In addition to any Federal-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. You may be paid under the Federal minimum wage if you fit into one of the following categories:
- Federal Under 20 Minimum Wage - $4.25 - Federal law allows any employer to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
- Federal Tipped Minimum Wage - See Here - Employees who earn a certain amount of tips every month may be paid a lower cash minimum wage, but must earn at least $7.25 including tips every hour. For more details, read about the Federal tipped minimum wage.
Frequently Asked Questions - Federal Minimum Wage & Labor Law
- What is the Federal minimum wage?
The current Federal minimum wage of $7.25 per hour is the lowest amount a non-exempt employee in any state in the the United States can legally be paid for hourly work. Special minimum wage rates, such as the "Federal waitress minimum wage" for tipped employees, may apply to certain workers.
- How much will I earn working a minimum wage job?
A full time minimum wage worker working 40 hours a week, 52 weeks a year, will earn $58.00 per day, $290.00 per week, and $15,080.00 per year1. The national poverty line for a family unit consisting of two people is $16,020.00 per year.
- What is the Federal under 18 minimum wage?
Federal employers may pay 18 year olds and minors the youth minimum wage of $4.25 for the first 90 days of employment. Other labor law exemptions for minors may exist.
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1 These earnings estimates do not account for the Federal income tax , federal income tax, or local/municipal income taxes.
2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services