Minimum wage

You have certain wage rights.

Most employees have the right to be paid at least the federal minimum wage ($7.25) for all hours worked regardless of whether you are paid by the hour, the day, or at a piece rate. Some state laws and local laws provide greater employee protections; employees are entitled to the highest of the local, state, or federal minimum wage that applies to them.

Employers may pay tipped employees a cash wage of no less than $2.13 per hour under federal law provided the employer meets certain requirements before claiming a credit against its minimum wage obligations. If your tips combined with cash wages do not equal at least the federal minimum wage ($7.25), your employer must make up the difference. Note that many states require higher direct wage amounts for tipped employees.

Employers may pay new hires the youth minimum wage ($4.25) during the first 90 days of employment if you are under age 20; but after 90 days of employment or upon reaching age 20 (whichever comes first), they must receive the minimum wage. Employers who obtain a Section 14(c) certificate from the U.S. Department of Labor may also pay employees below the minimum wage if they are a student-learner enrolled in vocational education, a full-time student in certain workplaces, or a person whose earning or productive capacity is impaired by a disability.

Two male engineers with the hardhats looking at the blueprints in their office at the construction site
Barman working at the cafe. Bartender taking a wineglasses from the overhead rack at bar counter.

A different, higher minimum wage may apply for work performed on or in connection with certain federal construction and service contracts. If you perform work on or in connection with certain federal contracts entered into before January 30, 2022, you must be paid at least a minimum wage of $11.25 per hour. If you are a tipped employee who performs work on or in connection with such a federal contract, you must be paid a minimum of $7.90 per hour. If you perform work on or in connection with certain federal contracts that are entered into, renewed, or extended on or after January 30, 2022, you generally must be paid at least a $15.00 minimum wage.

A service employee performing federal government contract work under a service contract must be paid at least the prevailing wage in the local area for the classification in which the employee is working. The prevailing wage is the minimum hourly wage to be paid based on what is prevailing in the locality where the work is performed, plus fringe benefits. If a worker performed work under such a contract, the worker must be paid at least the prevailing wage for the work performed. Please visit Sam.gov to find the applicable prevailing wage rate(s) for a federal service contract.

Questions?
We’re here to help.

We are committed to helping you understand your rights as a worker. Many questions about wage rights may be answered by using the following elaws (Employment Laws Assistance for Workers and Small Businesses) Advisors:

For additional assistance, please contact:

The Wage and Hour Division of the U.S. Department of Labor: 1-866-4-US-WAGE (1-866-487-9243)

All discussions with us, including complaints, are free and confidential. Your name and the nature of the complaint will not be disclosed to your employer. The only time we would share such information is when necessary to pursue an allegation, and we would only do so then with your permission, or if required by a court.

A construction worker performing work on a federal or federally funded construction project subject to Davis-Bacon requirements must be paid at least the prevailing wage in the local area for the labor classification in which the employee is working. The prevailing wage is the minimum hourly wage and fringe benefits to be paid based on what is prevailing in the locality where the work is performed.

You have the right to be paid for all hours you work in a workweek. In general, “hours worked” includes all time an employee must be on duty, or at the place of work. Normally, time spent in training, traveling from site to site during the day, and doing repair work must be paid.

Unless exempt, you have a right to be paid the minimum wage and overtime for hours that you’ve already worked regardless of your immigration status.

Additional resources

Need more information?
The elaws (Employment Laws Assistance for Workers and Small Businesses) Advisors are a set of online tools developed by the U.S. Department of Labor to help employees and employers understand their rights and responsibilities under Federal employment laws.