When it comes to the minimum wage in the United States, there are many questions and debates about the topic. Given the vast array of opinions, it can be hard to differentiate between fact and fiction. To help shed some light on the matter, here are some facts about the minimum wage in the United States that are accurate.
1. Federal Minimum Wage is $7.25 per Hour
The current federally mandated minimum wage is $7.25 per hour. This federal minimum wage applies to all states in the US, as well as the District of Columbia. However, many states have raised their minimum wage beyond the federal level.
2. States Can Establish a Higher Minimum Wage
Although the federal minimum wage is set at $7.25 per hour, states can choose to set their own minimum wage, as long as it is not lower than the federal level. This is why many states now have minimum wages that are higher than the federal rate, such as California, which has a minimum wage of $11.00 per hour.
3. Tipped Employees Have a Separate Minimum Wage Rate
The federal minimum wage for employees who receive tips is currently $2.13 per hour. This rate applies to employees who receive more than $30 per month in tips. However, some states have chosen to set their own minimum wage rate for tipped employees, which is typically higher than the federal rate.
4. The Minimum Wage Applies to Most Employees
The minimum wage applies to most employees, regardless of their age, occupation, or educational background. This means that all employees must be paid at least the federal minimum wage rate. Employers may not require employees to work for a rate lower than the federal minimum wage.
5. Minimum Wage Rates Are Adjusted for Inflation Annually
The federal minimum wage rate is adjusted for inflation annually. This means that the rate can change depending on the current rate of inflation. States may also choose to adjust their minimum wage rate to account for cost of living increases.
When it comes to the minimum wage in the United States, it is important to be aware of the facts. The federal minimum wage is currently set at $7.25 per hour, but many states have chosen to establish a higher minimum wage rate for their citizens. The minimum wage also applies to most employees, and rates are adjusted for inflation annually. With this information, workers can ensure that they are being paid a fair rate for their work.