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The federal minimum wage is $7.25 an hour. If your state's minimum wage is higher, which do you pay?

The higher one. Employers must comply with both laws.

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  1. The federal $7.25, since federal law wins
  2. Whichever the worker picks
  3. The higher state minimum wage ✔

Why: The FLSA sets the federal minimum wage at $7.25 per hour, in effect since July 24, 2009. Many states set higher minimums, and employers must follow both, so in practice you pay the higher rate.

Huh, didn't know that: The FLSA also sets the federal rules for overtime, recordkeeping and youth employment.

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Why did the coin refuse the job? It didn't make cents.
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References

Answer: The higher state minimum wage. The FLSA sets the federal minimum wage at $7.25 per hour, in effect since July 24, 2009. Many states set higher minimums, and employers must follow both, so in practice you pay the higher rate.

  1. DOL Wage and Hour Division: Minimum Wage www.dol.gov/agencies/whd/minimum-wage
    The federal minimum wage is $7.25 per hour effective July 24, 2009.
    Checked 2026-10-11.
  2. DOL Wage and Hour Division: Minimum Wage www.dol.gov/agencies/whd/minimum-wage
    Some state laws provide greater employee protections; employers must comply with both.
    Checked 2026-10-11.

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