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Wage
Definition
A wage is a fixed regular payment for work, typically calculated on an hourly, daily, or piecework basis rather than an annual salary.
Explanation
Wages differ from salaries in that wages are typically paid based on time worked rather than a fixed annual amount. Wage earners are often eligible for overtime pay. Many retail, restaurant, construction, and manufacturing jobs pay wages.
The Fair Labor Standards Act (FLSA) sets federal minimum wage and overtime rules. Some states and cities have higher minimum wages.
Example
A construction worker earning $25 per hour working 40 hours per week earns $1,000 per week before deductions.