In the United States, employers must adhere to varying minimum wage laws that differ by state and sometimes by city. Managing compliance can be challenging for companies with employees in multiple states. Some states plan yearly increases, while others maintain the federal minimum wage of $7.25, unchanged since 2009. However, in 2024, over 20 states have implemented further increases. To assist businesses in staying updated with these changes, we’ve compiled a detailed minimum wage rate by state in the United States.
What Is the Minimum Wage in the United States?
The minimum wage is the lowest hourly payment employers can legally pay their workers, as mandated by the Fair Labor Standards Act (FLSA). This legislation sets a base level of earnings to help safeguard employees, especially those in lower-paying roles with limited opportunities, from being underpaid. Both federal and state laws are in place to ensure companies adhere to these wage standards.
The U.S. established its first federal minimum wage in 1938 at $0.25 per hour, a measure President Franklin D. Roosevelt introduced. The FLSA also prohibited child labor and limited the workweek to 44 hours. Since its inception, the law has evolved to reflect economic, social, and political changes.
The federal minimum wage is $7.25 per hour and has been unchanged since 2009.
However, minimum wage levels vary between the federal standard and individual state laws. In discrepancies, the higher wage rate, which benefits the employee, prevails. Therefore, while $7.25 is the minimum nationwide, some states enforce higher minimum wages. States also differ in specific aspects of minimum wage regulations, such as eligibility and provisions for young workers and student learners. It’s essential to understand the particular rules in your state.
Currently, 29 states plus the District of Columbia have set their minimum wages above the federal level. Fourteen states align their minimum wages with the federal rate. Two states have set rates below the federal minimum, and five have no minimum wage laws, which means the federal rate applies by default in these locations.
There are also several federal minimum wage standards exemptions, which will be discussed later in the article.
An Overview of the Minimum Wage Rate by State in the United States in 2024
Each state has the authority to establish its minimum wage. When a state’s minimum wage exceeds the federal minimum, employers must pay the higher wage.
For instance, Arkansas has set its minimum wage at $11 per hour for 2024. Arkansas employers must pay at least this amount because it surpasses the federal minimum of $7.25 per hour.
If you’re curious about the minimum wage in your state, refer to the chart below. States listed with a minimum wage of $7.25 adhere to the federal standard. So, here is a table of the current minimum wage rates for each state in the United States as of 2024:
| State | Minimum Wage ($/hr) | Tipped Wage ($/hr) |
| Alabama | 7.25 | 2.13 |
| Alaska | 11.73 | Tipped wage follows the regular minimum |
| Arizona | 14.35 | 11.35 |
| Arkansas | 11.00 | 2.63 |
| California | 16.00 | Tipped wage follows the regular minimum |
| Colorado | 14.42 | 11.40 |
| Connecticut | 15.69 | Tipped minimum wage for bartenders is $8.62/hour, others $7.62/hour. |
| Delaware | 13.25 | 2.23 |
| District of Columbia | 17.50 (Effective from July 1st 2024) | 10.00 (Effective from July 1st 2024) |
| Florida | 12.00 (Will increase to 13.00 by September 30, 2024) | 8.98 (Will increase to 9.98 by September 30, 2024) |
| Georgia | 5.15 (7.25 for employers covered under FLSA) | 2.13 |
| Hawaii | 14.00 | 12.75 |
| Idaho | 7.25 | 3.35 |
| Illinois | 14.00 | 8.40 |
| Indiana | 7.25 | 2.13 |
| Iowa | 7.25 | 4.35 |
| Kansas | 7.25 | 2.13 |
| Kentucky | 7.25 | 2.13 |
| Louisiana | 7.25 | 2.13 |
| Maine | 14.15 | 7.08 |
| Maryland | 15.00 | 3.63 |
| Massachusetts | 15.00 | 6.75 |
| Michigan | 10.33 | 3.93 |
| Minnesota | $10.85 (for employers with a gross revenue over $500,000.) $8.85 (for employers with a gross revenue under $500,000.) | Tipped wage follows the regular minimum. |
| Mississippi | 7.25 | 2.13 |
| Missouri | 12.30 | 6.15 |
| Montana | 10.30 | Tipped wage follows the regular minimum. |
| Nebraska | 12.00 | 2.13 |
| Nevada | 12.00 | $15.13 (for employers with more than 6 employees) and $13.73 (for seasonal employers and those with fewer than 6 employees) |
| New Hampshire | 7.25 | 3.27 |
| New Jersey | $15.13 (for employers with more than 6 employees) $13.73 (for seasonal employers and those with fewer than 6 employees) | 5.26 |
| New Mexico | 12.00 | 3.00 |
| New York | 1. 16.00 (for New York City, and Long Island & Westchester) 2. 15.00 (for the rest of the New York State) | 13.35 (Tipped Service Employees in New York City, and Long Island & Westchester) 10.65 (Tipped Food Service Workers in New York City, and Long Island & Westchester) 12.50 Cash Wage (Tipped Service Employees in the remainder of New York State) 10.00 Cash Wage (Tipped Food Service Workers in the remainder of New York State) |
| North Carolina | 7.25 | 2.13 |
| North Dakota | 7.25 | 4.86 |
| Ohio | 10.45 | 5.25 |
| Oklahoma | 7.25 | 2.13 |
| Oregon | As of July 1st, 2024: $14.70 (Standard) $15.95 (Portland Metro) $13.70 (Non-urban Counties) | Tipped wage follows the regular minimum. |
| Pennsylvania | 7.25 | 2.83 |
| Rhode Island | 14.00 | 3.89 |
| South Carolina | 7.25 | 2.13 |
| South Dakota | 11.20 | 5.60 |
| Tennessee | 7.25 | 2.13 |
| Texas | 7.25 | 2.13 |
| Utah | 7.25 | 2.13 |
| Vermont | 13.67 | 6.84 |
| Virginia | 12.00 | 2.13 |
| Washington | 16.28 (Standard) 19.71 (SeaTac) 19.97 (Seattle) 20.29 (Tukwila) | 16.28 |
| West Virginia | 8.75 (for employers with more than six nonexempt employees at any separate, distinct, and permanent work location) $7.25 (for employers with fewer than six nonexempt employees at any separate, distinct, and permanent work location) | 2.62 |
| Wisconsin | 7.25 | 2.33 |
| Wyoming | 5.15 (7.25 for employers covered under FLSA) | 2.13 |
The table indicates both the minimum wage rates that apply generally and the federally mandated minimum where state rates do not exceed the federal minimum of $7.25 per hour. Currently, the District of Columbia has the highest minimum wage, which was recently increased to $17.50 on July 1, 2024.
State Minimum Wages: Highest and Lowest Rates in 2024
In 2024, minimum wage rates across the United States show substantial variation, shaped by distinct economic conditions and state laws.
- Lowest Minimum Wage: Georgia and Wyoming have set their minimum wage at $5.15 per hour, the lowest in the country. However, most employees are covered by the Federal Fair Labor Standards Act, which mandates a minimum wage of $7.25 per hour, overriding the lower state rates.
- Highest Minimum Wage: The District of Columbia has the highest minimum wage at $17.50 per hour. Close behind, Washington State’s minimum wage stands at $17.28 per hour.
Which States Do Not Set Their Minimum Wage Rates?
In states with no specific minimum wage laws, the federal rate of $7.25 per hour is used by default. The following five states have no minimum wage regulations:
- Louisiana
- Alabama
- South Carolina
- Mississippi
- Tennessee
What States Have Set Minimum Wages Below the Federal Level?
When a state’s minimum wage is below the federal minimum, the higher federal rate of $7.25 per hour applies to employees covered by the Fair Labor Standards Act (FLSA). Only two states currently have minimum wage rates lower than the federal standard:
- Georgia at $5.15
- Wyoming at $5.15
Recent Developments in Minimum Wage Legislation
The federal minimum wage has been fixed at $7.25 per hour since July 24, 2009. In the past few years, there have been strong efforts to increase this rate. The Fight for $15 campaign, a notable political initiative, has pushed for the national minimum wage to be adjusted to $15 per hour, aligning with the economic levels of other similar nations.
This initiative has led to legislative changes in various states, setting the state minimum wage at $15 or higher:
- California: $16.00
- Connecticut: $15.69
- District of Columbia: $17.50 (effective from July 1, 2024)
- Massachusetts: $15.00
- Maryland: $15.00
- New Jersey: $15.13 (for employers with more than six employees)
- New York: $16.00 (New York City, Long Island & Westchester; $15.00 (remainder of New York State)
- Oregon: $15.95 (Portland Metro area, effective from July 1, 2024)
- Washington: $16.28 (Standard); $19.71 (SeaTac); $19.97 (Seattle); $20.29 (Tukwila)
Additionally, certain cities have adopted these increases to reflect the higher local cost of living. These shifts in minimum wage levels are driven by economic and political factors aiming to raise living standards for workers nationwide.
Determining the applicable minimum wage in a specific area can be complex. Federally, it stands at $7.25 per hour unless overridden by state or local laws. Variations may also exist based on the industry and the employee’s age.
What Is the Living Wage in the United States?
Understanding the financial requirements for residing in the U.S. involves acknowledging the variability in living costs across different areas. Typically, higher salaries are associated with increased living expenses.
You can find multiple calculators online, like NerdWallet and MIT, comparing living costs, minimum wages, and average wages by state. These tools help assess whether the salaries in a specific area can adequately cover daily living expenses.
Minimum Wage Exceptions in the US
In the US, minimum wage laws set a baseline for employee compensation, but not all workers qualify for this rate. Some workers are paid less than the minimum wage to incentivize businesses to employ them.
1. Tipped Employees
In the US, workers who earn a substantial part of their income from tips may be paid less than the minimum wage. Tipped employees, such as servers, can be paid as little as $2.13 per hour if they regularly earn over $30 monthly tips. This wage and tips must meet or exceed the federal minimum wage. Employers must make up the difference if tips and hourly earnings don’t reach the minimum wage.
2. Student Workers
Federal laws mandate that students working full-time at a university in retail or service positions must receive at least 85% of the standard wage. These students may work up to 8 hours daily or 20 weekly during the academic term and up to 40 hours weekly when school is not in session. Upon graduation or leaving school, they must receive the standard minimum wage of $7.25 per hour.
3. Young Employees
Employees under 20 may be paid a lower training wage of $4.25 per hour during their first 90 days. After this period, or if they turn 20 sooner, their pay must be adjusted to the federal minimum wage.
4. Workers with Disabilities
Workers with disabilities, such as physical or mental challenges that impair their job performance, might receive less than the minimum wage under the Fair Labor Standards Act (FLSA). Conditions that affect work include blindness, cerebral palsy, and mental illness, among others. Employers are required to inform these employees about any pay adjustments. Disabled individuals employed by the Federal Government are guaranteed a minimum wage of $10.10 per hour.
5. Student Learners
Student learners are 16 years or older high school students participating in vocational education programs. Employers who are approved can pay these students 75% of the federal minimum wage, currently $5.44 per hour, for their enrollment in the vocational program.
6. Other Categories Exempt from FLSA
Several types of employees are entirely exempt from the minimum wage laws under the Fair Labor Standards Act (FLSA), including:
- Workers at seasonal or recreational establishments
- Agricultural laborers
- Caregivers for the elderly
- Occasional babysitters
- Workers in the fishing industry
- Federal criminal investigators
- Seamen on foreign-flagged ships
- Newspaper deliverers
- Switchboard operators
The Debate on Federal Minimum Wage Increase
Whether the Federal Minimum Wage will increase in 2024 is frequently asked, and the answer for the near future is no. The federal minimum wage has been $7.25 since 2009. Significant economic arguments exist for and against adjusting the current minimum wage.
Arguments in Favor of Higher Minimum Wage
- Poverty reduction: Raising the minimum wage can lift numerous workers out of poverty, improve their living conditions, and decrease their dependence on government assistance.
- Increased Economy: Increased wages result in higher disposable income, leading to more consumer spending, potentially stimulating economic growth and increasing demand for goods and services.
- Narrowing income gaps: Boosting the minimum wage can help reduce the disparity between income levels, contributing to a more balanced distribution of wealth.
- Boosts to productivity and morale: Better compensation can improve employee productivity and job satisfaction, decreasing turnover and lowering business training costs.
Arguments Against Higher Minimum Wage
- Higher business costs: Particularly for small businesses, increased wage expenses might lead to higher consumer prices or could even force some businesses to shut down.
- Potential for job loss: Some argue that higher labor costs could force businesses to cut jobs, especially for low-skilled workers, as they may opt for automation or relocate to areas with cheaper labor.
- Fewer entry-level jobs: There may be fewer job openings for less experienced workers as employers might prefer hiring more skilled individuals if they have to pay higher wages.
- Inflationary concerns: Wage increases might cause businesses to raise prices for goods and services, which could contribute to inflation.
Conclusion
Understanding and complying with minimum wage laws in the United States requires attention to both federal and state regulations. While the federal minimum wage has remained at $7.25 per hour since 2009, many states have implemented higher rates, reflecting their economic conditions and cost of living. This comprehensive guide provides detailed information on the current minimum wage standards across states, aiding businesses in ensuring compliance and helping employees understand their rights.
As minimum wage legislation evolves, staying informed about these changes is crucial for all stakeholders. By being aware of both general and specific wage requirements, businesses can navigate the complexities of employment law more effectively, and workers can better advocate for fair compensation.
Frequently Asked Questions
What is the current federal minimum wage in the United States?
The federal minimum wage in the U.S. is $7.25 per hour, unchanged since 2009. This rate applies in states without a higher minimum wage and under federal jurisdiction (FLSA).
How do state minimum wages compare to the federal rate?
Many states have higher minimum wages than the federal rate. For example, in 2024, Washington’s minimum wage will be $17.00 per hour, while Alabama and Indiana will still have the federal rate of $7.25 per hour.
Are there any states with upcoming minimum wage increases?
Yes, several states have scheduled increases. For instance, Florida’s minimum wage will rise to $13.00 per hour by the end of September 2024. Nevada and Oregon also have planned increases, typically based on inflation and legislation.
How are tipped employees affected by minimum wage laws?
Tipped employees have a lower minimum wage as tips contribute to their earnings. The federal cash wage for tipped employees is $2.13 per hour, but states like Michigan will require a $3.93 per hour cash wage in 2024.
