Federal minimum wage

The federal minimum wage is the US hourly pay floor under the Fair Labor Standards Act.

Key takeaways

• FLSA pay floor: The federal minimum wage is the lowest hourly rate most US employers must pay covered non-exempt workers.
• $7.25 since 2009: The rate has been $7.25 an hour since 24 July 2009 — unchanged for over 15 years.
• States can go higher: Many states and cities set local minimum wages above the federal floor; employers must pay whichever rate is higher.
• Non-exempt workers only: Exempt employees under the FLSA salary and duties tests are not covered by the federal minimum wage requirement.

Common questions

What is the federal minimum wage?

The federal minimum wage is the US hourly pay floor under the Fair Labor Standards Act. It is $7.25 an hour and has been unchanged since 24 July 2009, though many states set higher rates.

How does the federal minimum wage interact with state rates?

Employers must pay the higher of the federal or applicable state/local rate. As of 2026, many states — including California, Washington, and New York — set minimum wages well above $7.25. When a state rate exceeds the federal floor, the state rate applies to covered workers in that jurisdiction.