What is Minimum Wage?
Minimum wage is the lowest hourly amount an employer may legally pay an employee. In the United States, the amount varies from state to state.
How Minimum Wage Works
If an employer compensates employees on an hourly basis, that employer must pay the employee no less than the minimum wage. In the United States, the minimum wage is set by the federal government. The government periodically modifies the minimum wage to reflect rises in the general price level and cost of living.