When federal and state laws differ, which minimum wage applies?

• A. State minimum wage
• B. Federal minimum wage
• C. The Fair Labor Standards Act
• D. Local ordinance

Answer: (C)

The key idea is that workers are entitled to the higher minimum wage when federal and state laws differ. The Fair Labor Standards Act is the federal law that establishes the baseline minimum wage and provides the framework for wage requirements across the country. States can set higher minimums, and when that happens, the higher state rate applies in that state. Local ordinances can also set higher wages, but the governing rule is to pay the higher applicable wage. So the Fair Labor Standards Act stands as the foundational law that guides this determination and, in practice, is used as the reference point to ensure you’re paying at least the federal baseline or the higher state wage, whichever is applicable.