What is the minimum wage?

• A. the maximum wage paid to employees
• B. a service charge added at checkout
• C. a minimum amount per hour which most workers are entitled to be paid
• D. a tax on labor

Answer: (C)

The minimum wage is the lowest legal amount workers must be paid per hour. It acts as a wage floor set by the government to prevent very low pay and to help workers cover basic living costs. It isn’t the maximum anyone can earn, nor is it a service charge added at checkout, and it isn’t a tax on labor. In many places there are different rates for younger workers or apprentices, but the general idea is a baseline rate that most workers are entitled to be paid per hour. If an employer pays at or above this rate, they’re complying with the rule.