What is the minimum wage?

The minimum wage is defined as the lowest legal hourly wage that can be paid to employees for their work. This wage is established by federal, state, or local laws to ensure that workers receive a basic level of compensation for their labor. Minimum wage laws are designed to protect workers from exploitation and to help improve the standard of living for low-income employees.

This definition highlights the essential purpose of minimum wage legislation, which is to set a baseline level of pay to support workers’ basic needs. The existence of a minimum wage helps to promote fairness in the labor market and provides a foundation for wage expectations in various industries and job types. The focus on establishing a legally mandated lowest pay rate differentiates it from other forms of wages, like average wages or wages negotiated through union contracts, which can vary widely based on different factors.