Minimum Wage

Source: Fair Labor Standards Act (FLSA), 29 U.S.C. § 206 — Federal minimum wage established 1938, last increased in 2009 to $7.25/hour (unchanged for 17 years as of 2026).

Last reviewed:

Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.

Federal Law

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.

Wisconsin Law
WI

How Wisconsin differs from federal law

Wisconsin's minimum wage matches the federal rate:

  • Standard minimum wage: $7.25/hr (same as federal)
  • Tipped employees: $2.33/hr cash wage (must reach $7.25/hr with tips)
  • Opportunity employees: $5.90/hr for employees under 20 during their first 90 consecutive days of employment
  • Wisconsin does not have scheduled minimum wage increases
  • Wisconsin law preempts local governments from setting higher minimum wages (Wis. Stat. § 104.001(2))
  • The WI minimum wage applies to most employers — exemptions exist for some agricultural and domestic workers

Additional Steps in Wisconsin

File minimum wage complaints with the WI Department of Workforce Development, Equal Rights Division at (608) 266-6860 or online at dwd.wisconsin.gov. Workers can also file with the federal DOL or bring a private lawsuit.

Relevant Law: Wis. Stat. § 104.01 et seq. (minimum wage). Wis. Stat. § 104.001(2) (local preemption).

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