WORKERS across the US have to be paid at least the federal minimum wage.
We explain all you need to know about the rate - and how it varies across different states.
1We explain all you need to know about federal minimum wage Credit: Alamy
It comes as the Bank of America in May 2021 announced plans to lift its minimum wage to $25 an hour by 2025.
The US bank hiked its minimum wage to $20 an hour - up from $17 an hour - in March 2020.
The federal minimum wage for covered employees is currently $7.25 per hour - and it hasn't been raised since 2009.
It's said to be the longest period of time without an increase since the Roosevelt administration implemented it in 1938.
Previous changes to the rates meant the rate increased to $5.85 in 2007, to $6.55 in 2008 and then finally to $7.25 in July 2009.
In 2020, President Joe Biden said he would push for a $15-per-hour minimum wage and rejected the idea that it would hurt small businesses.
He added that being paid $6 or $7 an hour was below the poverty line no matter where you live in America.
However, legislation sponsored by Senator Bernie Sanders and others to lift the rate to $15 an hour failed in Congress.
THE minimum wage law applies to employees at businesses that have an annual gross volume of sales of at least $500,000.
It also applies to employees of smaller firms if they are engaged in interstate commerce or in the production of goods for commerce.
Plus, it applies to employees of federal, state or local government agencies, hospitals and schools, and generally also domestic workers.
A minimum wage of $4.25 per hour applies to young workers under the age of 20 during their first 90 consecutive calendar days of employment, as long as their work doesn't displace other workers.
After this or the employee reaches 20 years of age, whichever comes first, the employee must be paid a minimum wage of $7.25 per hour.
If you get tipped more than $30 a month, your employer is only required to pay $2.13 per hour in direct wages if that amount combined with the tips at least equals the federal minimum wage.
However, many states require higher direct wage amounts for tipped employees.
The federal minimum wage is enforced by the the US Department of Labor.
In the absence of action at the federal level, many states and localities have raised their own minimum wages .
January 1, 2022 signaled a rise in workers' wages in 21 states and 35 cities and counties.
A report by the National Employment Law Project found a total of 81 jurisdictions will raise their minimum wage over the course of 2022.
Federal minimum wage law supersedes state minimum wage laws where the federal rate is higher than the state one.
It means you shouldn't be paid any less than $7.25 an hour, no matter where you live.
On New Year's Day, the nation's highest minimum wage went into effect in West Hollywood, California but it only affects hotel workers who are now making $17.64 an hour.
Mr Biden believes strong unions and higher wages can resurrect America's middle class while helping to bridge economic and racial inequities.
In April 2021, he signed an executive order that hikes the minimum wage for federal workers to $15 an hour.
The move will increase the current minimum wage of $10.95 by nearly 37% by March 2022.
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