Federal Minimum Wage

Federal Minimum Wage is the lowest amount an employer can legally pay an employee per hour as mandated by federal law. It sets a standard to ensure workers receive a fair wage for their labor.

Example #1

For example, as of July 24, 2009, the federal minimum wage was set at $7.25 per hour. This means that any covered non-exempt employee must receive at least $7.25 for every hour worked.

Example #2

Another example would be if an employer paid their employees only $6.00 per hour, which is below the federal minimum wage. This would be a violation of the law.

Misuse

Misusing the Federal Minimum Wage can occur when employers pay workers less than the mandated minimum wage. This exploitation can lead to financial instability for employees, making it crucial to protect against such practices to ensure fair compensation and economic security.

Benefits

Adhering to the Federal Minimum Wage benefits workers by guaranteeing a baseline level of compensation, promoting dignity in work, and helping to combat income inequality. It ensures employees are fairly compensated for their time and labor.

Conclusion

Federal Minimum Wage serves as a fundamental protection for employees, establishing a baseline standard of fair pay and preventing exploitation in the workplace. By upholding this requirement, businesses contribute to a more equitable and just employment landscape.

Related Terms

Minimum WageFair Labor Standards Act (FLSA)