Is there a federal minimum wage in the United States?

Yes, there is a federal minimum wage in the United States. It is established by the federal labor standards law (the Fair Labor Standards Act, FLSA) and serves as a national floor that employers must respect throughout the country.

This federal floor is not the only benchmark. Many states, cities, and counties set their own minimum wages, generally higher, based on local cost of living and economic conditions. When that happens, the rate more favorable to the worker at the place of employment prevails.

For those who invest or plan to operate a business in the United States, including in the context of EB-5, understanding these rules matters: hires must comply with both the federal floor and local requirements, as well as other labor obligations.

• There is a federal floor valid throughout the country.
• States and municipalities may require higher rates.
• The floor most favorable to the worker at the location always applies.

Since rates are adjusted over time, confirm the current federal and local floors with the U.S. Department of Labor (DOL) and local authorities before setting your payroll.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.