Final answer:
The FLSA's minimum wage is a floor on wages, and this federal baseline of $7.25 per hour, set in mid-2009, overrules any state or local laws allowing lower payment. Local movements continue to push for a living wage, arguing that the current minimum is not sufficient for a standard of living above the poverty line.
Step-by-step explanation:
The Fair Labor Standards Act (FLSA) sets the federal minimum wage as a price floor to prevent employers from paying workers wages that fall below a specific hourly rate. Since mid-2009, this amount has been $7.25 per hour. By setting this wage, the federal government establishes the lowest legal payment for employees, and this rate preempts state and municipal laws that would permit payment of wages lower than the federal standard. Many local movements argue for higher wage rates, considering the current minimum wage insufficient to live on, noting that it falls below the poverty line, particularly for families, and advocate for what is known as a living wage. Despite these local efforts, the federal minimum wage serves as the baseline that all employers must adhere to, effectively establishing a price floor in the labor market.