What is the federal minimum wage?

The federal minimum wage is the minimum hourly wage rate employers must pay their employees. It is the lowest wage rate allowed by law. In the United States, the federal minimum wage is $7.25 per hour as of 2020. This wage applies to all states, including California. In addition to the federal minimum wage, many states have their own minimum wage laws. The state of California has its own minimum wage law that sets a higher wage rate than the federal minimum wage. As of January 2021, the minimum wage in California is $14.00 per hour for employers with 26 or more employees, and $13.00 per hour for employers with 25 or fewer employees. It is important for employers to understand the rules for minimum wage so they can make sure their employees are paid correctly in accordance with the law. Employers who fail to pay the minimum wage can be held liable for back wages and other penalties. It is important to also remember that in California, tipped workers must also be paid at least the minimum wage for all hours worked. This includes non-tipped duties.

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