Minimum Wage
Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.
What is this right?
The federal minimum wage is $7.25 per hour. Your employer must pay you at least this amount for every hour you work. Many states and cities have higher minimum wages — you're entitled to whichever is higher.
Tipped employees have a lower federal minimum ($2.13/hr), but your tips plus wages must equal at least $7.25/hr. If they don't, your employer must make up the difference.
When does it apply?
This right applies when:
- You work for an employer covered by the FLSA
- You are at least 20 years old (workers under 20 can be paid $4.25/hr for the first 90 days)
- You are not a full-time student or student learner on a special certificate
Common misconceptions:
- "My state's minimum wage is the only one that matters" — You get whichever is higher: federal, state, or local.
- "Undocumented workers don't have minimum wage rights" — Wrong. The FLSA covers all workers regardless of immigration status.
- "Independent contractors don't get minimum wage" — True, but many workers are misclassified as contractors when they should be employees.
What should you do?
Step 1: Know your rate. Check your state and city minimum wage — it's often higher than the $7.25 federal rate.
Step 2: Calculate your actual hourly pay. Divide your total weekly pay by total hours worked. If it's below the minimum, you have a claim.
Step 3: Document everything. Save pay stubs, schedules, and any records of hours worked.
Step 4: File a complaint. Contact the DOL Wage and Hour Division or your state's labor department. Many employment attorneys handle wage cases on contingency.
What should you NOT do?
Don't accept illegal deductions. Your employer cannot deduct for cash register shortages, breakage, or uniforms if it would bring your pay below minimum wage.
Don't ignore tip credit violations. If you're a tipped employee and your tips + base pay don't reach $7.25/hr, your employer must pay the difference.
Don't sign away your rights. Any agreement to work for less than minimum wage is unenforceable under federal law.
How California differs from federal law
California's minimum wage is significantly higher than the federal rate:
- State minimum wage: $16.90/hr (effective January 1, 2026). Adjusted annually based on CPI.
- No tip credit: Unlike federal law, California does not allow a tip credit. Employers must pay the full state minimum wage regardless of tips received.
- Fast food workers: $20.00/hr for fast food restaurant employees (AB 1228, effective April 1, 2024). The Fast Food Council may increase this rate annually, capped at 3.5% or CPI.
- Healthcare workers (SB 525): $24/hr for large hospital systems and dialysis clinics (through June 30, 2026, rising to $25/hr on July 1, 2026). $21/hr for clinics (through June 30, 2026, rising to $22/hr on July 1, 2026). $21/hr for other covered facilities (through May 31, 2026, rising to $23/hr on June 1, 2026). All tiers continue increasing annually.
Many cities and counties (San Francisco, Los Angeles, San Jose, etc.) have local minimum wages even higher than the state rate. You are entitled to whichever rate is highest.
Additional Steps in California
File a wage claim with the DLSE at dir.ca.gov or call (833) 526-4636. Check your local city/county minimum wage — it may be higher than the state rate.
Relevant Law: California Labor Code § 1182.12, § 1197
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