What is minimum wage?

The minimum wage in the United States is specified in the Fair Labor Standards Act (FLSA). According to the FLSA, every employer must pay their employees who are engaged in commerce or in the production of goods for commerce wages at rates not less than $5.85 per hour beginning on the 60th day after May 25, 2007, increasing to $6.55 an hour after 12 months, and to $7.25 an hour after 24 months from that date ^[4]. Additionally, for federal contracts covered by Executive Order 14026, the minimum wage will increase to $17.75 per hour starting January 1, 2025 ^[6]. The sources do not provide a comprehensive overview of minimum wage laws across all states or specific exceptions that may apply, such as for tipped employees or different state laws.