7 Ohio employers with annual gross receipts under $394,000 must pay no less than $7.25 per hour. In addition to one-time bumps, some states and localities are also implementing multi-year, progressive rate escalations or tying rate increases to economic metrics like the Consumer Price Index, Johnson said. In order to find the minimum https://www.bookstime.com/ wage the year you were born, GOBankingRates looked at the United States Department of Labor’s federal minimum wage data to find the minimum wage for every year from 1938 to 2024.
Upcoming Minimum Wage Increases
A little over 11% of workers seeing higher paychecks are Black, and nearly 40% are Hispanic. Let’s face it—minimum wage changes can feel like a never-ending maze, but you don’t have to navigate it alone. With this guide, you’ve gained the clarity and confidence to tackle 2025’s updates head-on. With so many differences and exemptions that affect different states and even different cities within those states, it can be tricky for an employer to remain compliant with the law.
Tipped minimum wage law in the United States
At the time, the law placed the minimum wage at just 25 cents per hour. The law also created standards for child labor and overtime pay. Minimum wages can change periodically, depending on various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding the rules affecting the state(s) you operate in is key to compliance. On minimum wage around the us the other hand, in states like Wyoming ($5.15), where the minimum wage rate is lower than the federal rate, the higher federal rate of $7.25 per hour applies.
Minimum wage rates in the United States in 2024, by state
Non-exempt employees, typically including hourly and blue-collar workers earning less than $684 per week, fall under federal regulations. States and cities also play a significant role in determining the minimum rate for standard workers living there by setting their own minimum wage rates. The table below lists the current prevailing 2025 minimum wage rates for every state in the United States. Click any state for details about normal balance the minimum wage, exemptions, and other state labor laws. You can find a list of highest and lowest minimum wage rates here. Minnesota, where Minneapolis is located, is one of few states that currently has state minimum wage as the standard for tipped restaurant workers.
Get a Federal all-in-one labor law poster
- Five states are bumping up the statewide minimum wage through previously adopted legislation, and two states — Nebraska and Montana — are making changes after voters passed ballot measures.
- Twenty (20) states used the federal minimum wage rate of $7.25.
- The minimum wage is the bare minimum you can pay employees, and the federal government hasn’t changed its minimum wage rate since 2009.
- Employers must pay employees covered by the federal Fair Labor Standards Act at least the federal minimum wage.
- As the economy evolves, public opinion and political will might shift, leading to new policies that aim to keep wages in line with modern costs.
This nuanced approach ensures that employees receive compensation aligned with the economic conditions of their particular region. Minnesota law allows employers to pay a 90-day training wage for employees under the age of 20. After 90 days, employers must pay employees, regardless of age, the state minimum wage. It’s important to note that this minimum wage law only applies to employees who receive enough tips to meet the minimum wage of $7.25 per hour (or what their state/locality mandates). As an employer, you must make up the difference if the employee’s wages don’t equal the minimum wage.
- Most states throughout the United States (including Washington D.C.), have created – and continue to create – laws to update minimum wage requirements.
- This includes tipped workers, although employers can take up to $5 an hour off the wage as tip compensation.
- California generally adjusts its wage annually based on cost-of-living changes.
- Some states set subminimum rates for minors and/or students or exempt them from coverage or have a training wage for new hires.
- States with high living costs continue to climb above $15, sometimes much higher, while others remain tied to $7.25.
A State-by-State Breakdown of 2025 Minimum Wages
However, many states didn’t want to wait on Washington to adjust that figure any further, so they implemented their own laws, some indexing wages to inflation or cost-of-living formulas. This is a state minimum wage update and does not cover any updates to specific local, municipal or industry minimum wages or rates for contractors or tipped workers. Please consult legal counsel for guidance on how to stay compliant with all the minimum wage laws where your business operates. As the cost of living continues to rise in the U.S., many critics argue that the $7.25 per hour federal minimum wage won’t cut it. The minimum wage is the bare minimum you can pay employees, and the federal government hasn’t changed its minimum wage rate since 2009. The lowest minimum wages based on state law were $5.15 in Georgia and Wyoming, which were lower than the federal government’s requirement.
- She is dedicated to improving client experiences and building lasting relationships.
- Overall, 30 states, as well as DC, Puerto Rico, Guam, and the Virgin Islands, have a minimum wage higher than the federal rate.
- Today, the federally mandated minimum wage stands at $7.25 per hour, a figure echoed in the minimum wages of 20 states spanning Alabama to Wyoming.
- We’re about to explore the ins and outs of the 2025 minimum wage landscape across all 50 states (plus a few special jurisdictions) in a simple, straightforward way.
- The following states have passed legislation to reach a $15 minimum wage in 2025 and beyond.
Employers with annual sales of less than $110,000 may pay $4.00 an hour. 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. Meanwhile, Nevada workers now enjoy minimum wages of $11.25 for employees without qualifying health insurance and $10.25 for workers with qualifying health insurance starting as of July 1. The minimum wage differs from state to state since the cost of living varies a lot across the country.
Further reading
In Michigan, a scheduled jump to $12.48 takes effect in February 2025. These incremental changes can help businesses plan their budgets better and give employees a sense of how their paycheck might grow. State laws exempt some jobs or sectors from the minimum wage labor law.