<P> The minimum wage in the United States is set by US labor law and a range of state and local laws . Employers generally have to pay workers the highest minimum wage prescribed by federal, state, and local law . Since July 24, 2009, the federal government has mandated a nationwide minimum wage of $7.25 per hour . As of January 2017, there were 29 states with a minimum wage higher than the federal minimum . From 2014 to 2015, nine states increased their minimum wage levels through automatic adjustments, while increases in eleven other states occurred through referendum or legislative action . In real terms, the federal minimum wage peaked at $11.54 per hour in 1968, using 2017 inflation - adjusted dollars . </P> <P> As of January 2017, Massachusetts and Washington have the highest state minimum wage at $11.00 per hour . There is a racial difference for support of a higher minimum wage with most black and Hispanic individuals supporting a $15.00 federal minimum wage, and 54% of whites opposing it . In 2015, about three percent of white, Asian, and Hispanic or Latino workers earned the federal minimum wage or less . Among black workers, the percentage was about four percent . </P>

Who has authority to increase the federal minimum wage