Minimum wage is the lowest amount of compensation that an employer is legally required to pay their employees for their work. The minimum wage is set by federal, state, and local governments and can vary depending on location and industry. In the U.S., the federal minimum wage is set by the Fair Labor Standards Act (FLSA), but individual states and municipalities may establish higher minimum wages to reflect local economic conditions. Employers must comply with the applicable minimum wage laws in their jurisdiction, and failure to do so can result in legal penalties. Some workers, such as tipped employees, may have different minimum wage rates under specific regulations.
