Final answer:
The lowest legally mandated pay that an employer can offer an employee is known as the minimum wage, and it was $7.25 per hour at the federal level in 2016.
Step-by-step explanation:
The lowest amount an employer can pay an employee as mandated under federal and state laws is known as the minimum wage. This price floor is established to ensure that individuals working full time can afford a basic standard of living. In 2016, the federal minimum wage was set at $7.25 per hour.
However, this amount can vary as some states and cities have established higher local minimum wages. The concept of a living wage has been promoted by various political movements, which argue that the current federal minimum wage does not sufficiently cover the costs of a reasonable standard of living, given the cost of living and the federal poverty line.
Under federal and state laws, the lowest amount an employer can pay an employee is called the minimum wage. The minimum wage is a price floor set by the U.S. government to ensure that someone working full-time can afford a basic standard of living.
The federal minimum wage in 2016 was $7.25 per hour, but some states and localities have higher minimum wage rates. The federal minimum wage translates to an annual income of $15,080 for a single person, which is slightly higher than the Federal poverty line.
It is important to note that the Congress periodically raises the federal minimum wage to account for the rising cost of living.