Minimum Wage: What you need to know

The federal minimum wage is $7.25 per hour (29 USC 206). The FLSA does not supersede any state or local laws that are more favorable to employees. Therefore, if a state has a minimum wage that is higher than the federal minimum wage, employers subject to the state minimum wage law are obligated to pay the higher rate to employees working in that state. Numerous states and localities have increased their minimum wage rates above that of the federal government. In addition, there are movements in many more states, counties, and cities to push for increases in the future. These movements will continue until the federal government increases the minimum wage rate to an amount that satisfies state and local governments.
A few states across the nation have enacted laws, prohibiting cities from enacting their own minimum wage rates that are higher than the state minimum wage rate. The most recent is Alabama, precluding a minimum wage rate in Birmingham that would have increased Birmingham’s rate above the state rate.
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The minimum wage for federal contract workers performing work on or in connection with federal contracts covered by Executive Order (EO) 13658 is $10.15 per hour. Future adjustments for the minimum wage will be indexed annually to reflect changes in the Consumer Price Index (CPI).
Tipped workers. The required minimum cash wage that generally must be paid to tipped employees is $5.85 per hour.
Workers with disabilities. All individuals working under service or concession contracts with the federal government will be covered by the same $10.15-per-hour minimum wage protections, including workers whose productivity is affected because of their disabilities.
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