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While the U.S. has set a federal minimum wage, state variations and exemptions can make complying with minimum wage laws a crucial but challenging aspect of managing a business.
Getting it right prevents you from facing legal challenges. But more importantly, it protects employees from unreasonably low salaries that cannot support their cost of living. We’ve collected some data on states and the federal minimum wage to make that a little easier.
That said, you should always review your state’s requirements and website before setting a final wage.
The minimum wage is the hourly rate that every non-exempt employee is subject to, establishing a baseline pay for people in the United States. There is a federal minimum wage, and many states also set their own minimum wage.
A team member living in a state with minimum wage laws is entitled to the higher minimum wage rate.
It’s important to note that there are different exceptions to federal and state minimums. In some situations, the employer must adhere to other requirements. States have their own lists and rules, and the Department of Labor has guidance for federal requirements on:
Let’s look at the federal minimum wage and some of those caveats next.
Federal laws set the current federal minimum wage in the United States at $7.25 per hour. The federal government set the minimum wage in 1938 under the Fair Labor Standards Act or FLSA.
The last minimum wage increase was in July 2009, when it increased from $6.55 to its current value.
For jobs like waitstaff, employers may pay tipped workers no less than $2.13 per hour in direct wages. This is only the case if the amount paid plus what they receive in tips totals the federal minimum wage. Also, the employee must be allowed to retain all tips, and they regularly receive more than $30 in tips each month.
People under the age of 20 can be paid a reduced minimum wage of $4.25 during the first 90 consecutive days of employment. After those 90 days, or when a person reaches the age of 20, they must be paid the standard federal minimum wage. Importantly, you cannot pay the reduced wage if you use a young worker to replace any other employee.
Here’s a list of the minimum wage laws for each state. The federal government also collects this data in a single wage table to help you plan your payment. Below are the standard minimums for wage earners and tipped employees, though its important to note that many farm and seasonal employees may be subject to a subminimum wage.
Alabama
Alabama does not have state minimum wage laws. It follows the federal rate of $7.25 per hour.
Alaska’s state minimum wage is $11.73 per hour.
Arizona’s state minimum wage is $14.35 per hour.
Arkansas’s minimum wage is $11.00 per hour.
California’s state minimum wage law was updated for 2024 to remove employee-count restrictions. Regardless of size, businesses must pay a state minimum wage of $16 per hour.
Colorado’s state minimum wage is $14.42 per hour. For tipped employees, employers must pay at least $11.44 per hour if employee tips are enough to meet or exceed the amount they would otherwise have earned with the minimum for regular team members.
Connecticut has a state minimum wage of $15.69 per hour, including special guidelines for tipped workers:
Hotel and restaurant staff: $6.38 per hour
Bartenders: $8.23 per hour
Delaware’s state minimum wage is $13.25 per hour.
The minimum wage is $17.00 per hour.
Florida’s state minimum wage is $12.00 per hour.
Georgia businesses must follow the federal rate of $7.25 if they are subject to the FLSA. If not, the minimum rate is $5.15 per hour.
Hawaii has a state minimum wage of $14 per hour. Per the Department of Labor, employees earning a guaranteed $2000 monthly are exempt from the minimum wage and overtime law.
Idaho’s state minimum wage is $7.25 per hour.
Illinois’s state minimum wage is $14.00 per hour.
Indiana’s state minimum wage is $7.25 per hour.
Iowa’s state minimum wage is $7.25 per hour.
Kansas’s state minimum wage is $7.25 per hour.
Kentucky’s state minimum wage is $7.25 per hour.
Louisiana does not have state minimum wage laws. It follows the federal rate of $7.25.
Maine’s state minimum wage is $14.15 per hour.
Maryland has a state minimum wage of $15 per hour.
Massachusetts’s state minimum wage is $15.00. State law requires the minimum wage always be at least $0.50 greater than the federal minimum.
Michigan’s state minimum wage is $10.33 per hour. Employees aged 16 to 17 must be paid at least 85% of the minimum wage.
Minnesota's state minimum wage depends on the employer’s annual revenue and the employee’s age.
Annual revenue of $500,000 or higher (“large employers”): $10.85 per hour
Annual revenue of under $500,000 (“small employers”): $8.85 per hour
The wage training wage for those under age 20 and the youth wage for those under 18 years old is $8.85 per hour.
Mississippi does not have state minimum wage laws. It follows the federal rate of $7.25.
Missouri’s state minimum wage is $12.30.
Montana’s state minimum wage depends on the business’s gross annual sales:
Gross annual sales over $110,000 pay $10.30 per hour.
Gross annual sales under $110,000 pay $4.00 per hour, but only if the FSLA does not apply.
Nebraska’s state minimum wage is $12.00 per hour.
Nevada’s state minimum wage is $11.25 per hour for employers who do not provide health benefits for their workers. The minimum is $10.25 if the employer does offer that employee a qualifying health insurance plan.
New Hampshire has a state minimum wage of $7.25 per hour and will automatically follow the federal minimum if it falls below that amount.
New Jersey’s state minimum wage depends on the number of employees a business has.
Businesses with six or more employees: $15.13 per hour
Businesses with fewer than six employees: $13.73 per hour
New Mexico’s state minimum wage is $12.00.
New York’s state minimum wage depends on your location.
Long Island, Westchester, and NYC: $16.00 per hour
Anywhere else: $15 per hour
North Carolina’s state minimum wage is $7.25 per hour.
North Carolina’s state minimum wage is $7.25 per hour.
Ohio’s state minimum wage depends on the employer’s annual gross receipts.
$385,000 and over: $10.45 per hour
Under $385,000: $7.25 per hour
Oklahoma’s state minimum wage depends on how many employees you have and/or your annual gross sales.
Businesses with ten or more employees: $7.25 per hour
Businesses with annual gross sales over $100,000: $7.25 per hour
Other businesses: $2.00 per hour
Similar to other states with minimum wages under $7.25, employees are entitled to the federal minimum because of FLSA guidelines unless otherwise specified as exempt.
Oregon’s minimum wage varies by location:
Portland metro area: $15.45 per hour
Standard rate: $14.20 per hour
Non-urban counties: $13.20 per hour
Pennsylvania’s state minimum wage is $7.25 per hour.
Rhode Island’s state minimum wage is $14.00 per hour.
South Carolina does not have state minimum wage laws. It follows the federal rate of $7.25.
South Dakota’s state minimum wage is $11.20 per hour.
Tennessee does not have state minimum wage laws. It follows the federal rate of $7.25.
Texas’s state minimum wage is $7.25 per hour.
Utah’s state minimum wage is $7.25 per hour.
Vermont’s state minimum wage is $13.67 per hour for employers with two or more employees. The federal rate applies otherwise.
Virginia’s state minimum wage is $12.00 per hour.
Washington state’s minimum wage is $16.28 per hour.
West Virginia’s state minimum wage depends on the number of employees a business has:
Six or more employees: $8.75 per hour
Fewer than six employees: $7.25 per hour
Wisconsin’s state minimum wage is $7.25 per hour.
Wyoming’s state minimum wage is $5.15. Non-exempt businesses should follow the federal rate of $7.25.
Most states have their own minimum wage guidelines. Businesses in these states are subject to both federal and state labor laws. According to the Department of Labor, employees are entitled to the higher minimum wage rate.
If you’re based in Illinois, where the minimum wage is $14.00 per hour, then that’s the amount you’re required to pay your employees. On the other hand, if you’re from Wyoming, where the minimum wage is $5.15 per hour, you should follow the federal minimum wage rate unless your business or your employees are exempt from the FLSA.
Do you have a new minimum wage? You might not under federal law.
But in a move that should delight many employees, roughly 25 locations in the United States are increasing their minimum wage as of January 1, 2024. This set includes 24 states and the District of Columbia.
Locations with an increased minimum wage in 2024 are:
Alaska
Arizona
California
Colorado
Connecticut
Delaware
Florida
Hawaii
Illinois
Maine
Maryland
Michigan
Minnesota
Missouri
Montana
Nebraska
Nevada
New Jersey
Ohio
Oregon
Rhode Island
South Dakota
Vermont
Washington
Washington, D.C.
It’s important to review your own minimum wages regularly because state laws change wages throughout the year. Other than January 1, many laws will use July, 1 as the start date for minimum wage increases.
Not every state sets a minimum wage. In those cases, they rely on what is set by the federal government. For states with their own minimum wage, Georgia and Wyoming have the lowest hourly amount at $5.15. However, employers must pay the federal rate of $7.25 if they’re covered by the FLSA.
When it comes to the highest minimum wages in the U.S., it’s a battle of the Washingtons.
Washington state is the state with the highest minimum wage, coming in at $16.28 per hour. However, Washington, D.C. has the country’s highest minimum wage at $17 per hour.
California comes in at a close third place with a $16 minimum wage. Other states with a minimum wage of $15 or more include Connecticut, Maryland, Massachusetts, New Jersey, and New York.
As of the start of 2024, five states have not adopted a state minimum wage. These states are Alabama, Louisiana, Mississippi, South Carolina, and Tennessee.
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