The minimum wage is the minimum hourly wage that employers are required to pay employees. The first minimum wage established by the FLSA was $0.25 back in 1938—that’s the equivalent of $4.55 today.
The current federal minimum wage is $7.25. Employees who live in states that have their own minimum wage laws must be paid the higher of the two wages. For example, in the State of Washington, the minimum wage is currently $15.74; therefore, Washington employees must be paid $15.74 per hour.
Tipped employees who receive more than $30.00 per month in tips must be paid at least $2.13 per hour in wages. The employee must earn at least the minimum hourly wage of $7.25 when their tips are combined with the $2.13 hourly rate. Employees under the age of 20 must be paid at least $4.25 per hour during their first 90 days of work.
