How Minimum Wage Works?

What is the minimum wage? The minimum wage is the starting hourly wage an employer can pay an employee for work. Currently, the federal minimum wage is $7.25 an hour (part of the Fair Labor Standards Act). ... In most instances, the higher of the prevailing minimum wage requirements is binding for employers.

How is minimum wage determined?

If the job is not subject to the federal Fair Labor Standards Act, then state, city, or other local laws may determine the minimum wage. ... Therefore, often, their hourly wage, before tips, is less than the minimum wage.

Does minimum wage apply to part time?

Most workers are entitled to the minimum wage. This includes part-time staff, casual labourers (eg someone hired for one day), agency workers, homeworkers, workers paid by the number of items they make, apprentices, trainees and workers on probation. There are no exemptions for small employers.