$4.25 vs. $7.25: What Teens Must Know About Minimum Wage in 2025

If you’re a teen starting your first job in the U.S., you might wonder what wage you’re legally entitled to earn.

Here’s a clear, updated guide on how minimum wage rules apply to young workers in 2025.

What Is the Minimum Wage for Young Workers?

Under the Fair Labor Standards Act (FLSA), employers can pay workers under 20 years old a reduced wage of $4.25 per hour for the first 90 consecutive calendar days of employment.

Key points:

• Applies only to workers under age 20
• Limited to 90 days from the start date
• The clock resets if you move to a new employer
• After 90 days, employers must pay at least the federal minimum wage ($7.25/hour) or the state minimum wage if higher

What If Your State Has a Higher Minimum Wage?

Many states and cities have higher minimum wages than the federal rate.

In these cases, the higher rate prevails after the 90-day youth wage period.

For example:

• If your state’s minimum wage is $15 per hour, your employer must pay you that rate after 90 days.

• Some states do not allow a reduced youth wage, requiring employers to pay the standard rate from day one.

Always check your state’s labor laws to confirm your rights.

What Jobs Can Teens Legally Do?

Federal law also restricts the type of work and hours minors can work:

Ages 14–15:

1. Can work in non-hazardous jobs (customer service, light cleaning, office work)
2. Time limits: no more than 3 hours on a school day, 18 hours during a school week

Ages 16–17:

1. Can work unlimited hours
2. Cannot work in hazardous occupations (construction, mining, operating heavy machinery)

What Happens If Employers Don’t Follow These Rules?

The U.S. Department of Labor (DOL) enforces these laws through the Wage and Hour Division (WHD). Employers who underpay or violate hour restrictions may face:

1. Fines and penalties
2. Back pay requirements
3. Investigations if complaints are filed

Teens or parents can file a confidential complaint with the DOL if they believe their rights are being violated.

Why Is There a Lower Wage for Young Workers?

The youth minimum wage was created to encourage employers to hire teens without prior work experience, helping them gain skills while keeping labor costs manageable for businesses.

However, some critics argue it may lead to exploitation or high turnover, so it is crucial for young workers to know their rights.

Key Takeaways for Young Workers

• During the first 90 days: Employers may pay $4.25 per hour if you’re under 20.
• After 90 days: You must be paid at least $7.25 per hour (or your state’s higher minimum wage).
• Check your state laws for additional protections.
• You can report violations to the Department of Labor.

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