State and Federal Minimum Wage Laws

Complying with minimum wage laws is crucial to managing a business.

For starters, it prevents you from facing legal consequences. But more importantly, it protects employees from unreasonably low salaries that are impossible to support their cost of living.

The current federal minimum wage in the United States is $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.

Most states have their own minimum wage guidelines, which means that businesses in these locations are subject to both federal and state labor laws. According to the Department of Labor, employees are entitled to whichever is the higher minimum wage rate.

If you’re based in Illinois, where the minimum wage is $12.00 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.

Here’s a list of the minimum wage laws for each state.

Alabama

Alabama does not have state minimum wage laws. It follows the federal rate of $7.25 per hour.

Alaska

Alaska’s state minimum wage is $10.34 per hour.

Arizona

Arizona’s state minimum wage is $12.80 per hour.

Arkansas

Arkansas’s minimum wage is $11.00 per hour.

California

California’s state minimum wage depends on the number of employees you have.

• Businesses with 26 or more employees: $15.00 per hour

• Businesses with fewer than 26 employees: $14.00 per hour

Colorado

Colorado’s state minimum wage is $12.56 per hour. $9.45 per hour is the minimum for tipped employees if their tips are enough to meet or exceed the amount they would otherwise have earned with the minimum for regular team members.

Connecticut

Connecticut has a state minimum wage of $13.00 per hour, including special guidelines for tipped workers:

• Hotel and restaurant: $6.38 per hour

• Bartenders: $8.23 per hour

Delaware

Delaware’s state minimum wage is $10.50 per hour.

Florida

Florida’s state minimum wage is $10.00 per hour.

Georgia

Georgia’s state minimum wage is $5.15 per hour. Follow the federal rate of $7.25.

Hawaii

Hawaii has a state minimum wage of $10.10 per hour. Per the Department of Labor, employees earning a guaranteed $2000 every month are exempt from the minimum wage and overtime law.

Idaho

Idaho’s state minimum wage is $7.25 per hour.

Illinois

Illinois’s state minimum wage is $12.00 per hour.

Indiana

Indiana’s state minimum wage is $7.25 per hour.

Iowa

Iowa’s state minimum wage is $7.25 per hour.

Kansas

Kansas’s state minimum wage is $7.25 per hour.

Kentucky

Kentucky’s state minimum wage is $7.25 per hour.

Louisiana

Louisiana does not have state minimum wage laws. It follows the federal rate of $7.25.

Maine

Maine’s state minimum wage is $12.75 per hour.

Maryland

Maryland has a state minimum wage of $12.50 per hour, or 85% of the rate for employees under 18 years old.

Massachusetts

Massachusetts’s state minimum wage is $14.25. Their labor law states that the minimum wage will always be at least $0.50 greater than the federal minimum.

Michigan

Michigan’s state minimum wage is $9.87 per hour. Employees aged 16 to 17 may be paid 85% of the minimum wage.

Minnesota

Minnesota's state minimum wage depends on the employer’s annual revenue.

• Annual revenue of $500,000 or higher (“large employers”): $10.33 per hour

• Annual revenue of under $500,000 (“small employers”): $8.42 per hour

$8.42 is also the minimum wage for employees under 18 years of age.

Mississippi

Mississippi does not have state minimum wage laws. It follows the federal rate of $7.25.

Missouri

Missouri’s state minimum wage is $11.15.

Montana

Montana’s state minimum wage depends on the business’s gross annual sales.

• Gross annual sales over $110,000: $9.20 per hour

• Gross annual sales under $110,000: $4.00 per hour (below the federal minimum wage)

If you fall under the latter category, follow the federal minimum of $7.25 per hour.

Nebraska

Nebraska’s state minimum wage is $9.00 per hour.

Nevada

Nevada’s state minimum wage is $9.75 per hour for employers who do not provide health benefits for their workers. The minimum is $8.75 otherwise.

New Hampshire

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

New Jersey’s state minimum wage depends on the number of employees a business has.

• Businesses with six or more employees: $13.00 per hour

• Businesses with fewer than six employees: $11.90 per hour

New Mexico

New Mexico’s state minimum wage is $11.50.

New York

New York’s state minimum wage depends on your location.

• Long Island, Westchester, and NYC: $15.00 per hour

• Anywhere else: $13.20 per hour

North Carolina

North Carolina’s state minimum wage is $7.25 per hour.

North Dakota

North Carolina’s state minimum wage is $7.25 per hour.

Ohio

Ohio’s state minimum wage depends on the employer’s annual gross receipts.

• $342,000 and over: $9.30 per hour

• Under $342,000: $7.25 per hour

Oklahoma

Oklahoma’s state minimum wage depends on how many employees you have and/or your annual gross sales.

• Businesses with ten or more employees or 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.

Oregon

Oregon’s state minimum wage is $12.75 per hour.

Pennsylvania

Pennsylvania’s state minimum wage is $7.25 per hour.

Rhode Island

Rhode Island’s state minimum wage is $12.25 per hour.

South Carolina

South Carolina does not have state minimum wage laws. It follows the federal rate of $7.25.

South Dakota

South Dakota’s state minimum wage is $9.95 per hour.

Tennessee

Tennessee does not have state minimum wage laws. It follows the federal rate of $7.25.

Texas

Texas’s state minimum wage is $7.25 per hour.

Utah

Utah’s state minimum wage is $7.25 per hour.

Vermont

Vermont’s state minimum wage is $12.55 per hour for employers with two or more employees. The federal rate applies otherwise.

Virginia

Virginia’s state minimum wage is $11.00 per hour.

Washington

Washington’s state minimum wage is $14.49 per hour.

West Virginia

West Virginia’s state minimum wage depends on the number of employees a business has.

• Businesses with six or more employees: $8.75 per hour

• Businesses with fewer than six employees: $7.25 per hour, or whatever the federal minimum wage amounts to

Wisconsin

Wisconsin’s state minimum wage is $7.25 per hour.

Wyoming

Wyoming’s state minimum wage is $5.15. Follow the federal rate of $7.25.