What Is the Minimum Wage Law?

The minimum wage is the lowest hourly wage that an employer can pay an employee. This wage is determined by the federal government. Minimum wage varies with each state, but all states must meet at least the federal minimum wage, though many states pay a significantly higher wage.

History

In 1935, in response to labor unions, President Franklin Roosevelt established the first minimum wage, 25 cents per hour.

Federal Minimum Wage

Currently, the federal minimum wage is $6.55 per hour. On July 24, 2009, it will increase to $7.25. Every few years, Congress increases the minimum wage.

State Minimum Wage

Twenty-seven states have a higher minimum wage than the federal wage. Five states have no minimum wage: Louisiana, Mississippi, Alabama, Tennessee and South Carolina.

Highest Minimum Wage

Washington State has the highest minimum wage at $8.55.

Exceptions

Agricultural workers, independent contractors, those who work for tips and a few others are exempt from minimum wage.

Opposition

Those who oppose a federal minimum wage feel that it may reward lazy workers, restrict small business owners and discourage hard work. Those in opposition suggest that minimum wage laws are a factor in American jobs moving overseas, where fewer restrictions apply.

Resources

• Who Is Exempt?
• What is Minimum Wage?
• Minimum Wage Laws in the States