What is the term for the lowest amount an employer can legally pay an employee for their work?

The term for the lowest amount an employer can legally pay an employee for their work is "minimum wage." Minimum wage laws are established by federal, state, and sometimes local legislation to guarantee a basic standard of living for workers, ensuring that employees receive a baseline level of compensation for their labor. This legal requirement is designed to protect workers from being paid excessively low wages, contributing to poverty and financial instability.

In contrast, "living wage" refers to a theoretical wage level that allows an individual to afford the basic necessities of life, which may be higher than the minimum wage. "Fair wage" is a more subjective assessment regarding just compensation for a worker's efforts and skills but does not represent a legally defined amount. An "hourly wage," while it describes how much an employee earns per hour, does not specifically indicate the legal minimum required by law. Thus, minimum wage is the precise and legally defined term for the lowest amount that can be paid to employees.