What is the current federal minimum wage and who does it apply to?

What the Law Says

The Fair Labor Standards Act (FLSA) sets the federal minimum wage and defines who must be paid at least that amount. It applies broadly to workers involved in interstate commerce or employed by certain types of businesses.

The federal minimum wage is set by the Fair Labor Standards Act (FLSA), specifically 29 U.S.C. § 206. This law requires employers to pay covered employees at least $7.25 per hour for all hours worked.

The FLSA applies to employees of 'enterprises' engaged in interstate commerce — including those producing goods for interstate commerce, handling records of such commerce, or regularly using the mails or telephones for interstate communication. It also covers individual workers whose work regularly involves interstate commerce, even if their employer is not an enterprise.

Certain workers are exempt from the minimum wage requirement, including some seasonal amusement/recreational employees, companionship service workers (under specific conditions), and full-time students working for certain employers — but these exemptions are narrow and require strict compliance with FLSA rules.

Statutory Text

Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at a rate not less than $7.25 an hour.

— 29 U.S.C. § 206(a)(1)(C) — Minimum wage

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