Minimum Wage — Payroll Definition
The lowest hourly rate an employer can legally pay — $7.25 federal, but higher in most states.
The lowest hourly rate an employer can legally pay — $7.25 federal, but higher in most states.
The federal minimum wage is $7.25/hour (unchanged since 2009). However, 30+ states and many cities set higher minimums. Notable 2026 minimums: California $16.90, New York City $17.00 ($16.00 upstate), Washington $17.13, Massachusetts $15.00. Tipped employees have a federal minimum of $2.13/hour, with tips expected to bring total compensation to at least $7.25. If they don't, the employer must make up the difference. Always check your local minimum — it's often higher than the state rate.