What is a Minimum Wage?

Answer:
Minimum wage is an wage that is the lowest amount an employer can legally pay employees.

Usually, minimum wage refers to the lowest hourly wage the federal or state government allows, but it can also refer to the lowest wage that employers and employees agree upon by contract. It can also be a weekly, monthly, annual or other type of wage as well.

The federal and state governments periodically revise the legal minimum wage, and the federal minimum may be different than other state minimums. A minimum wage is not the same as a living wage, which is a wage that pays an employee enough money to live “comfortably” in his/her geography. This varies widely, as one might guess. A living wage is usually determined to be higher than the legal minimum wage.