The minimum wage is the lowest hourly wage that an employer can pay an employee for labor. The Fair Labor Standards Act of 1938 (FLSA) set the first federal minimum wage at $0.25 per hour for covered workers. The minimum wage has since then increased a total of 22 times, the most recent in 2009.
The Federal Minimum Wage in the United States is currently $7.25 per hour, according to the Fair Labor Standards Act (FLSA); however, several states have raised their minimum wage higher than the federal minimum. If the state, city, or county minimum wage is higher than the federal minimum wage, employers must pay their workers the higher amount. The numbers in this article are from the National Conference of State Legislatures (NCSL).
29 states and D.C. currently have minimum wages above the federal minimum wage of $7.25.
Washington D.C. currently has the highest minimum wage in the United States at $15.20, followed by California with $15.00. The five highest minimum wages in the United States are located as follows: District of Columbia ($15.20), California ($15.00), Washington ($14.49), Massachusetts ($14.25), and Connecticut ($14.00).
Alabama, Louisiana, Mississippi, South Carolina, and Tennessee have not adopted a state minimum wage and, therefore, adopted the $7.25 federal minimum wage. In addition, new Hampshire repealed its state minimum in 2011, adopting the $7.25 minimum as well.
According to this information from the NCSL, several states have enacted legislation to raise their minimum wages by increments over the next several years. One example of these states is New Jersey, where the minimum wage will increase by $1.00 on January 1st of every year until it reaches $15.00 by January 1st, 2024.
Other states who have also enacted future increases to reach a $15.00 minimum wage over the next several years are New York (rate adjusted for inflation after 12/31/2020 until it reaches $15.00), Massachusetts (effective 1/1/2023), Illinois (effective 1/1/2025), Maryland (effective 1/1/2025), and California (effective 1/1/2022). Many other states have also enacted gradual increases to $13.50 and $12.
|Alaska||$10.85||$10.85||Effective 01-01-2023. Employers using a voluntary flexible work hour plan approved by the Alaska Department of Labor, who schedule employees for a 10-hour day, 40-hour workweek may be eligible for premium pay after 10 hours a day instead of after 8 hours. The premium overtime pay requirement is dropped for employers with fewer than 4 employees|
|Arkansas||$11||$2.63||Drops to $7.25 for employers with fewer than 4 employees.|
|California||$15.50||$15.50||Effective 01-01-2023. Many cities have varying minimum wages.|
|Connecticut||$15||$7.62||Effective 06-01-2023. Restaurant and hotel workers working a 7th consecutive day will have those hours treated as overtime. Minors (Under 18) may be paid 85% of the minimum wage for their first 90 days of employment.|
|District of Columbia||$17||$8||Effective 07-01-2023. If an employee’s hourly tip earnings (averaged weekly) added to the base minimum wage do not equal the District’s full minimum wage, the employer must pay the difference.|
|Florida||$13.65||$8.98||Effective 09-30-2023 ($11.00/$7.98 previously)|
|Georgia||$7.25||$2.13||Same as federal minimum, but drops top $5.15 for some limited FLSA exceptions.|
|Hawaii||$10.10||$9.35||Employees who earn a guaranteed monthly compensation of $2,000 or more are exempt from minimum wage and overtime requirements.|
|Idaho||$7.25||$3.35||Same as federal minimum.|
|Indiana||$7.25||$2.13||Same as federal minimum.|
|Iowa||$7.25||$4.35||Same as federal minimum.|
|Kansas||$7.25||$2.13||Same as federal minimum.|
|Kentucky||$7.25||$2.13||Same as federal minimum.|
|Louisiana||$7.25||$2.13||Same as federal minimum.|
|Minnesota||$10.59||$10.33||Drops to $8.63/$8.42 if employer's gross revenue is less than 500k.|
|Mississippi||$7.25||$2.13||Same as federal minimum.|
|Missouri||$12||$6||Retail or Service businesses earning less than $500,000 a year are not covered by the state minimum.|
|Montana||$9.95||$9.95||Drops to $4.00 for employers with gross annual sales of $110,000 or less.|
|Nevada||$11.25||$11.25||Drops to $10.25 if employee is also offered health benefits/insurance. Was $9.50 (w/ ins.)/$10.50 (w-out ins.) until 07-01-2023.|
|New Hampshire||$7.25||$3.26||Same as federal minimum.|
|New Jersey||$14||$5.26||Effective 01-01-2023.|
|New Mexico||$12||$3||Effective 01-01-2023.|
|New York||$15||-||Effective 12-31-2022. Drops to $14.20 outside of New York City and Long Island/Westchester. Minimum Tipped Wages vary.|
|North Carolina||$7.25||$2.13||Same as federal minimum.|
|North Dakota||$7.25||$4.86||Same as federal minimum.|
|Ohio||$10.10||$5.05||Effective 01-01-2023. Employers with gross revenue or receipts of $372,000 or less are permitted to pay employees the federal minimum wage.|
|Oklahoma||$7.25||$2.13||Same as federal minimum for employers with 10 or more full-time same-location employees or gross receipts of more than 100k per year. All other employees are subject to a minimum wage of $2.00, except those covered by FLSA, who are subject to federal minimum wage.|
|Oregon||$14.20||$13.50||$14.20/$13.50 standard, rises to $15.45/$14.75 in Portland and drops to $13.20/$12.50 in non-urban counties as of 07-01-2023. Rises each July based upon the increase, if any, to the US City average Consumer Price Index for All Urban Consumers.|
|Pennsylvania||$7.25||$2.83||Same as federal minimum.|
|Rhode Island||$13||$3.89||Effective 01-01-2023.|
|South Carolina||$7.25||$2.13||Same as federal minimum.|
|South Dakota||$10.80||$5.40||Effective 01-01-2023.|
|Tennessee||$7.25||$2.13||Same as federal minimum.|
|Texas||$7.25||$2.13||Same as federal minimum. With specified restrictions, employers may count tips and the value of meals and lodging toward the minimum wage|
|Utah||$7.25||$2.13||Same as federal minimum.|
|Vermont||$13.18||$6.28||Effective 01-01-2023. . Employers with 2 or more employees qualify for overtime, except for some industry-specific exemptions.|
|Washington||$15.74||$15.74||Effective 01-01-2023. Rises to $17.27 in Seattle and $17.54 in SeaTac.|
|West Virginia||$8.75||$2.62||Drops to $7.25 for employers with fewer than 6 employees.|
|Wisconsin||$7.25||$2.33||Same as federal minimum.|
|Wyoming||$7.25||$2.13||Same as federal minimum, but drops to $5.15 for positions not covered by the US Fair Labor Standards Act (FLSA).|