Minimum Wage Rate in the US by State 2024

What is the minimum wage in all 50 states?

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. Rep Lee’s comments that a business with well paid employees is good for productivity misses the fact that the businesses have to be able to stay open. Any business, particularly small businesses, that is hiring minimum wage workers that now has to pay $50/hour would very likely have to go out of business. They not only would have to pay the lowest paid workers $50/hour but they would also have to pay workers with more tenure and experience $50 plus an additional amount, raising costs even further.

What is the minimum wage in all 50 states?

The impact of this would disproportionately impact restaurant and hospitality firms as they have the highest percentage of minimum wage workers compared to other industries. These industries also tend to be fairly cyclical and need flexibility to account for economic shocks; It is highly unlikely that they have the capacity to increase prices to cover higher payroll costs. The current federal minimum wage, which is $7.25 per hour, went into effect on July 24, 2009. Employers must pay employees based on hourly wage laws, but there are exceptions. For example, employers can pay tipped employees a lower hourly wage.

Local ordinances

Starting April 1, some 550,000 fast-food workers will make a minimum wage of $20 an hour — higher than the state’s $16 minimum wage. The minimum wage is established by Congress and enforced by the Department of Labor. Alabama, Louisiana, Mississippi, South Carolina, and Tennessee do not have a state minimum wage, so employers are obligated to pay the federal minimum wage.

1 Like the federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Some states also set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Additionally, some local governments set minimum wage rates higher than their respective state minimum wage. Users are encouraged to consult the laws of particular States in determining whether the State’s minimum wage applies to a particular employment.

Young people are more likely to earn the minimum wage than older workers

While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. According to California’s nonpartisan Legislative Analyst’s Office, roughly 10% of low-wage workers are the sole breadwinner minimum wages with children. Darin Haris, CEO of Jack in the Box, headquartered in San Diego, told investors during a recent earnings call that the company could increase their menu prices between 6% to 8%. These provisions are enforced by the Equal Employment Opportunity Commission (EEOC).

Georgia and Wyoming have the lowest minimum wages of $5.15 per hour. However, if you’re an employer in either of these states, you must pay the $7.25 per hour minimum wage for employees subject to the FLSA regulations. Currently have minimum wages above the federal minimum wage of $7.25. Adhering to federal and state minimum hourly wage guidance helps you remain compliant and ensures your success.

Minimum Wage by State: Base Pay Rising in Over Half of US States in 2023

They include Alabama, Louisiana, Mississippi, South Carolina, and Tennessee. For example, the minimum wage for California’s standard workers is $15.50 per hour, which is higher than the federal minimum. That means you should pay your workers at least the state’s minimum wage of $15.50 per hour. But if the federal, state, and city minimum wages differ, can you cherry-pick the rate to apply? According to the Bureau of Labor Statistics, 247,000 workers were paid only $7.25 per hour in 2020.

  • Under the Federal Fair Labor Standards Act, states and localities are permitted to set their own minimum wage rates, which will take precedence over the Federal minimum wage rate if they are higher.
  • There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data.
  • Some state laws provide greater employee protections; employers must comply with both.
  • In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.
  • The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act unless the State wage rate is higher than the federal rate.
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