Wage Floor Law and Legal Definition
Wage floor is the floor below which wages are not allowed to fall. In other words, it is the minimum wage established either by law or by an agreed-upon wage bracket. It is the lowest wage legally permitted in an industry or in a government or other organization. In the U.S., the Fair Labor Standards Act sets the minimum hourly wages to be paid to employees. In order for the FLSA to apply, there must be an employment relationship between an employer and an employee. A number of states have minimum wages that are higher than the federal minimum wage.