Which of the following options best describes the federal minimum wage?

The federal minimum wage is established by law and currently set at $7.25 per hour. This amount serves as the baseline wage that employers must pay their employees for hourly work, ensuring a standard minimum income across various sectors of the economy. The federal minimum wage does not fluctuate based on geographic location, as it is a nationwide standard; however, individual states can choose to set higher minimum wages, which may be applicable in those jurisdictions.

Although the minimum wage can be a topic of review and potential changes, it is not subjected to annual reviews; changes are made legislatively and do not follow a set timeline. Furthermore, the federal minimum wage applies to various categories of employees, including part-time and temporary workers, meaning it is not exclusive to full-time employees. This comprehensive application underscores the importance of the minimum wage in protecting workers from excessive underpayment.

In summary, stating that the federal minimum wage is set at $7.25 accurately reflects its current legal status and baseline function within the labor market.