What is the federal minimum wage?

The federal minimum wage is the lowest wage an employer is legally allowed to pay their employees. This wage was first introduced by the Fair Labor Standards Act of 1938 and is reviewed periodically. As of January 2020, the federal minimum wage is set at $7.25 per hour. This wage applies to all states, including North Carolina. Employers who pay their employees below the federal minimum wage may face legal action, including fines or back payments from the Department of Labor. This amount is determined by the Department of Labor and will vary depending on the severity of the violation. Some states have higher than the federal minimum wage. In North Carolina, the minimum wage is the same as the federal rate, $7.25 per hour. In addition to the federal minimum wage, North Carolina employers must pay overtime wages at 1.5 times the regular rate of pay for all hours over 40 worked in a week. This is in addition to other protections set by the state, such as worker’s compensation laws and regulations protecting those under the age of 18. Overall, the federal minimum wage is a legal requirement for employers to ensure their employees are paid fairly for their work. It is important to stay informed on the current rate and ensure that employers are paying their employees the correct wage for the hours worked.

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