The federal minimum wage is $7.25 an hour. It took effect on July 24, 2009, and Congress hasn’t changed it since [1]. It comes from the Fair Labor Standards Act, which covers most private and public employers in the country.
At a glance
- Federal minimum wage
- $7.25 an hour [1]
- In effect since
- July 24, 2009 [1]
- Lowest cash wage for tipped workers
- $2.13 an hour [2]
- Most tip credit an employer can take
- $5.12 an hour [2]
- Who counts as tipped
- Gets more than $30 a month in tips [2]
Federal and state minimum wages
Many states, and some cities, set their own minimum wage above $7.25. The Department of Labor’s rule is simple: when state law protects workers more, employers have to follow both laws [1]. In practice, that means you’re owed the higher of the two rates.
How far apart they can be:
- In Texas, the state minimum matches the federal $7.25. BestTexas covers the details in its Texas minimum wage guide.
- California’s state minimum for 2026 is $16.90 an hour. See BestCalifornia’s California minimum wage 2026 guide.
- Florida’s rose to $15.00 on September 30, 2026, the last step of a schedule its voters approved in 2020. BestFlorida’s Florida minimum wage guide has the schedule.
If your state sets no minimum, or sets one below $7.25, the federal rate applies to jobs the federal law covers. Every state’s rate is in our minimum wage by state table.
Tipped workers
Federal law lets employers count part of a tipped worker’s tips toward the minimum wage. This is called a tip credit .
- The employer has to pay at least $2.13 an hour in cash wages [2].
- The tip credit can be at most $5.12 an hour, which is the gap between $2.13 and $7.25 [2].
- The rules apply to workers who regularly get more than $30 a month in tips [2].
If you’re paid less than you’re owed
- Keep records: your hours, your pay stubs and any tips you were given.
- Contact the Wage and Hour Division: the Department of Labor takes complaints about unpaid minimum wage and overtime. Its toll-free number is 1-866-487-9243, and complaints are confidential [3].
- Your state labor department: if your state’s minimum is higher, its labor agency enforces that rate.
Sources
Common questions
What is the federal minimum wage in 2026?
$7.25 an hour. It took effect July 24, 2009, and Congress hasn't raised it since.
What is the minimum wage for tipped workers under federal law?
An employer can pay a tipped worker as little as $2.13 an hour in cash wages, but only if tips bring the worker up to at least $7.25 an hour. If they don't, the employer has to make up the difference.
If my state's minimum wage is higher than $7.25, which one applies?
Employers have to follow both federal and state law, so in practice you get the higher rate.