Your hourly rate is the base amount you earn for each hour worked. This rate is used to calculate your gross pay: Hours × Rate = Gross Pay. The federal minimum wage is $7.25/hour, but many states and cities set higher minimums (e.g., California $16.00, Washington $16.28, NYC $16.00). Your hourly rate may differ from your effective rate if you receive tips, commissions, or bonuses.
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