TaxBandits Knowledge Base

What is minimum wage?

Minimum wages are the lowest rate the employer pays to the employee legally. Employers can pay their employees more than the minimum wage fixed by the government, but it is not possible to pay less. This law does not apply to independent contractors.

• Federal minimum wage rate: Employees' federal minimum wage rate is $7.25%.
• State Minimum wage rate: Only five states follow the same federal minimum wage rate, while others fix greater minimum wage rates than federal.