ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The federal minimum wage for covered nonexempt employees is $7.25 per hour. Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Detailed explanation-2: -While multiple states are raising minimum wage in 2023, including Massachusetts, others still rely on the federal minimum wage of $7.25 per hour. Overall, there are 20 states that have a minimum wage of $7.25 per hour.

Detailed explanation-3: -Although the federal minimum wage of $7.25 has not budged since 2009, nearly half of the country increased their minimum wages for hourly workers after January 1, 2022 to compensate their employees, and more than twenty will provide additional increases going into 2023.

Detailed explanation-4: -As of January 2023, the answer is just three-California ($15.50), Massachusetts ($15) and Washington ($15.74). But that won’t be the case for long. Several states have scheduled minimum wage increases to reach $15 an hour in the coming years.

Detailed explanation-5: -The current minimum wage in Texas is $7.25 per hour. Texas does not have a state-specific minimum wage, and adopts the Federal Minimum Wage by reference. Employers are allowed to deduct the reasonable cost of meals and lodging provided to their employees.