SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/teen-minimum-wage-meaning

What is a minimum wage?

The lowest wage an employer may pay.

Start playing free

  1. The average pay for a job in your town
  2. The most a worker can earn per hour
  3. The lowest pay allowed by law or contract ✔

Why: A minimum wage is set by law or by contract. Employers cannot pay less than it, though some states and cities set a higher one than the federal minimum.

Huh, didn't know that: The federal minimum wage is set by a law called the Fair Labor Standards Act (FLSA).

The dad joke
Knock, knock. Who's there? Overtime. Overtime who? Overtime I try to leave, my boss gives me more work!
Like this card?
Play the game

References

Answer: The lowest pay allowed by law or contract. A minimum wage is set by law or by contract. Employers cannot pay less than it, though some states and cities set a higher one than the federal minimum.

  1. CFPB Youth Financial Education Glossary www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/glossary
    A wage set by contract or by law as the lowest that may be paid to employees.
    Checked 2026-10-10.
  2. CFPB youth financial education glossary www.consumerfinance.gov/consumer-tools/educator-tools/youth-financial-education/glossary
    Federal minimum wage The lowest national wage as established by law in the Fair Labor Standards Act (FLSA).
    Checked 2026-10-10.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game

MoneyAt a new job, what does Form W-4 tell your employer?MoneyAfter you are hired, how long does an employer have to finish its part of Form I-9?MoneyOn Form I-9, which part do you, the new employee, fill out at the time of hire?

That's stuff everyone should know.