What is Federal Minimum Wage?

The federal minimum wage is the lowest hourly wage that employers can pay their nonexempt employees as set forth by the Fair Labor Standards Act (FLSA). Currently, the federal minimum wage is $7.25 per hour since July 24, 2009. Nevertheless, some states implement a higher minimum wage than the federal government’s for their hourly workers, and those workers would be compensated at the higher rate. In states without an assigned minimum wage, such as Alabama, employers who must comply with the FLSA would be required to pay their workers the federal minimum wage. The exempted workers from the federal minimum wage include specific categories of professionals, executives, and administrative workers. For additional information regarding minimum wage, please refer to our glossary term entry. HR professionals must inspect the FLSA and the list of excluded employees to make informed decisions about employee compensation.