In the United States, the federal minimum wage is the lowest wage rate that an employer can pay per hour to workers covered by the minimum wage law (the FLSA). The FLSA applies to: employees of federal, state or local government agencies, hospitals and schools, and generally to domestic workers; employees of enterprises that have annual gross volume of sales of at least $500,000; employees of smaller firms if they are engaged in interstate commerce or in the production of goods for commerce.
Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
