What determines the minimum wage you can pay by age
The federal minimum wage is $7.25 per hour, but the wage you can legally pay workers under age 20 is different in many cases. Employers often confuse youth worker rules, training wage provisions, and state overrides, which can result in underpayment or noncompliance. This guide explains the key federal rules and how state and local laws interact, with a focus on workers who are younger, new to the job market, or in restricted occupations. Use this as a practical reference to set correct starting wages and avoid common pitfalls.
Federal baseline: standard minimum wage and youth worker exception
Under the Fair Labor Standards Act (FLSA), the federal minimum wage for nonexempt workers is $7.25 per hour. A special youth minimum wage allows employers to pay workers under age 20 a lower wage for the first 90 consecutive calendar days of employment. During this period, the maximum youth wage is $4.25 per hour. After 90 days, or when the worker turns 20, whichever comes first, the employee must receive the full federal minimum wage. These rules are designed to encourage hiring of young workers while still limiting the duration of the reduced rate.
Eligibility conditions for the youth wage
- Worker must be under age 20 when employment begins.
- Pay period must fall within the first 90 consecutive calendar days of employment.
- Employment must be in nonexempt positions; certain hazardous jobs are prohibited for younger workers regardless of wage rules.
Important restrictions on hours and jobs
Young worker rules are not only about wage. Minors are subject to strict hour limits and job restrictions that vary by age. Workers under 14 generally may not be employed in nonagricultural jobs covered by the FLSA, with narrow exceptions such as delivering newspapers or acting. Workers aged 14 and 15 face limits on hours and types of tasks; they may not perform manufacturing, mining, or hazardous occupations. These protections reduce risk while acknowledging light, supervised work for younger teens.
State and local overrides: how to apply the higher standard
Many states and localities set higher minimum wages and have their own youth or junior wage rules. When multiple rules apply, employers must follow the standard that provides the highest pay. For example, a state may prohibit a youth wage altogether, require a higher training wage, or set different hour limits. Some cities mandate premium pay for certain schedules or require disclosures at hire. Employers should check both state and local rules where the work is performed.
Quick comparison of youth wage rules (illustrative)
| Jurisdiction | Youth or Training Wage (if any) | Age Limit or Conditions | Source Type |
|---|---|---|---|
| Federal (FLSA) | $4.25 per hour | Under 20, first 90 days | Federal law |
| State A (example) | No youth wage; full minimum wage required | No youth exception | State law |
| State B (example) | Higher training wage or premium rate | May differ by sector or age | State law + local rules |
| Local jurisdiction (example) | Possible schedule-based premiums | Specific to time or job type | Local ordinance |
Common mistakes and risks when paying younger workers
Misclassifying employees as independent contractors, failing to reclassify after 90 days, applying the youth wage beyond the allowed period or after age 20, and overlooking local premium rules are frequent issues. These errors can trigger back pay, penalties, and audits. Even when a training wage is permitted, job duties must provide genuine skill development and close supervision. Document training periods, track ages and dates precisely, and reevaluate eligibility regularly to remain compliant.
Special cases: apprentices, learners, and full-time students
The FLSA includes separate wage programs for apprentices, student learners in vocational education, and full-time students in limited work-study roles. These programs require certification or registration in some cases and may allow wages below the standard minimum wage when structured under Department of Labor rules. However, participation conditions, hour limits, and duration caps are strict. Employers should verify program eligibility and required documentation before enrolling workers in alternative wage programs rather than using informal training arrangements.
Practical steps for employers and young workers
Employers should create written policies that specify when the youth wage applies, how long it is used, and how reclassification at 90 days or age 20 is handled. Train managers on prohibited job tasks for minors, recordkeeping requirements, and local premium pay rules. Young workers should understand their rights, ask about wage calculations, and verify that pay aligns with their age, days on the job, and job duties. When in doubt, consult official guidance or legal counsel rather than relying on informal advice.
Key takeaways on minimum wage by age
- The federal minimum wage is $7.25 per hour; workers under 20 may be paid $4.25 for up to 90 days, provided they are otherwise eligible.
- After 90 days or when the worker reaches 20, whichever comes first, the full minimum wage applies.
- Minors under 14 face broad employment prohibitions; 14- and 15-year-olds have hour and task restrictions under the FLSA.
- State and local laws may prohibit youth wages, require higher wages, or add hour and job restrictions; always apply the most protective rule.
- Correct classification, precise date tracking, and documented training are essential to reduce compliance risk.