The federal minimum wage in the United States is currently set at $7.25 per hour for employers covered by the Fair Labor Standards Act (FLSA). This has been the standard rate since July 24, 2009. However, state and local governments have the authority to set their own minimum wages, which may be higher to reflect regional economic conditions, cost of living, and inflation.
US Minimum Wage by State as of January 1, 2024
| State | Minimum Wage |
|---|---|
| Alabama | $7.25 |
| Alaska | $11.73 |
| American Samoa | $7.25 |
| Arizona | $14.35 |
| Arkansas | $11.00 |
| California | $16.00 |
| Colorado | $14.42 |
| Connecticut | $15.69 |
| Delaware | $13.25 |
| District of Columbia | $17.50 |
| Florida | $13.00 |
| Georgia | $7.25 |
| Guam | $9.25 |
| Hawaii | $14.00 |
| Idaho | $7.25 |
| Illinois | $14.00 |
| Indiana | $7.25 |
| Iowa | $7.25 |
| Kansas | $7.25 |
| Kentucky | $7.25 |
| Louisiana | $7.25 |
| Maine | $14.15 |
| Maryland | $15.00 |
| Massachusetts | $15.00 |
| Michigan | $10.33 |
| Minnesota | $10.85 |
| Mississippi | $7.25 |
| Missouri | $12.30 |
| Montana | $10.30 |
| Nebraska | $12.00 |
| Nevada | $12.00 |
| New Hampshire | $7.25 |
| New Jersey | $15.13 |
| New Mexico | $12.00 |
| New York | $16.00 (New York City, Nassau County, Suffolk County, & Westchester County) $15.00 (Rest of the State) |
| North Carolina | $7.25 |
| North Dakota | $7.25 |
| Northern Mariana Islands | $7.25 |
| Ohio | $10.45 |
| Oklahoma | $7.25 |
| Oregon | $14.70 |
| Pennsylvania | $7.25 |
| Puerto Rico | $10.50 |
| Rhode Island | $14.00 |
| South Carolina | $7.25 |
| South Dakota | $11.20 |
| Tennessee | $7.25 |
| Texas | $7.25 |
| Utah | $7.25 |
| Vermont | $13.67 |
| Virgin Islands | $10.50 |
| Virginia | $12.00 |
| Washington | $16.28 |
| West Virginia | $8.75 |
| Wisconsin | $7.25 |
| Wyoming | $5.15 |
Overview of Minimum Wage Levels
- Federal Minimum Wage: Currently set at $7.25 per hour and applies to most workers in the U.S. States cannot establish lower rates.
- State Minimum Wage: States have the power to set rates above the federal baseline, considering factors like the cost of living and economic conditions. Workers are entitled to the highest applicable rate.
- Local Minimum Wage: Cities and counties may establish rates that are higher than both state and federal minimum wages. This approach addresses specific regional economic needs.
Frequency of Changes
Minimum wages change due to legislative updates, cost-of-living adjustments, or referendums. States often review and adjust their rates periodically, often linked to inflation indexes or Consumer Price Index (CPI) changes.
Key Determining Factors
- Cost of Living and Economic Conditions
- Inflation Adjustments
- Political and Advocacy Efforts
- Economic Research and Labor Reports
Exceptions to Minimum Wage Rules
- Tipped Employees: Can be paid as low as $2.13 per hour, with employers ensuring total earnings, including tips, meet or exceed the minimum wage.
- Young Workers: Under age 20 may earn $4.25 per hour during the first 90 days of employment.
- Full-Time Students: May earn 85% of the minimum wage, with work-hour restrictions.
- Student Learners: May earn at least 75% of the minimum wage during vocational training.
- Certain Exempt Employees: Some categories, like executives and professionals, may have specific thresholds.
Compliance Mandate
While states can set their own minimum wages, they cannot establish rates below the federal minimum. Employers must follow the highest applicable rate (federal, state, or local) to ensure workers receive the greatest benefit.
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