What is the federal minimum wage rate?

The federal minimum wage rate is currently set at $7.25 per hour. This rate has been in effect since July 24, 2009, and applies to non-exempt employees covered under the Fair Labor Standards Act (FLSA). The minimum wage is a critical aspect of labor law, ensuring that workers receive a baseline standard of compensation for their work.

Understanding the significance of the federal minimum wage is essential for payroll professionals, as it affects not only compliance with labor laws but also budgeting and organizational financial planning. Employers must be aware of this rate to ensure they are compensating their employees appropriately and in accordance with the law.

Other figures listed in the choices reflect historical minimum wage rates that have been superseded by the current federal standard of $7.25. It's important for payroll professionals to stay updated on any changes to wage laws, as states may establish higher minimum wages. However, the federal minimum serves as a foundational benchmark that cannot be legally undercut by employers.