If a state does not have a minimum wage or has a minimum wage lower than the federal minimum wage, the minimum wage in that state would default to the federal minimum wage. This means that regardless of the state's stance on minimum wage, employers in that state would still need to comply with the federal minimum wage requirement, which is currently set at [tex]$7.25 per hour.
This situation arises because the Fair Labor Standards Act (FLSA) establishes the federal minimum wage that applies across all states. If a state fails to set its own minimum wage or sets it below the federal level, the federal minimum wage serves as the default standard to ensure that workers are fairly compensated for their work.
For example, if a state decided not to establish a minimum wage, employers in that state would still need to adhere to the federal minimum wage of $[/tex]7.25 per hour to avoid violating federal labor laws. This ensures a baseline level of compensation for workers even in states without their own minimum wage regulations.
