Although the federal minimum wage is $7.25 an hour, the minimum an employer must pay depends on the state the employee lives in. Some states, and even cities, have mandated minimum wages that are different from the federal minimum.
Employees who meet federal minimum wage eligibility requirements and are covered by both state and federal minimum wage laws are entitled to the higher of the two. In 2022, 1.3% of hourly workers earned at or below the minimum wage, which is the lowest since data collection began in 1979.
