The US minimum wage is useful information for estimating your minimum income when working. The key point is that there is a general federal rate and separate, sometimes higher, state rates. This article explains the US minimum wage and how to look up the rate that applies where you live.
US Minimum Wage: Federal and State
The US has a federal minimum wage that applies nationwide. However, each state may set its own minimum wage, and many states set it higher than the federal rate.
When a state’s rate is higher than the federal rate, workers receive the higher rate. Some cities even have their own rate that is higher than the state rate. So the actual rate depends on where you work.
Why Rates Differ by Location
Different minimum wages reflect the varying cost of living between regions. More expensive areas usually have a higher minimum wage to match the local cost of living.
This means the same job can have a different minimum wage depending on the state or city. You should consider both the wage and the local cost of living when evaluating a job.
How to Look Up the Applicable Rate
Because rates change and vary by location, you should look up the current rate for the state and city where you live rather than relying on a number you happened to hear. This rate is also adjusted over time.
You should refer to information on minimum wage and state minimum wage laws on the labor department’s website to find the exact rate where you live.
Summary
The US minimum wage consists of a general federal rate and separate state rates, with many states set higher, reflecting different costs of living. Workers get the higher rate when the state sets it above the federal rate. You should look up the current rate for where you live, since the figure varies by region and over time.
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References
- U.S. Department of Labor — Minimum Wage: https://www.dol.gov/general/topic/wages/minimumwage
- U.S. Department of Labor — State Minimum Wage Laws: https://www.dol.gov/agencies/whd/minimum-wage/state
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