What is ‘minimum wage’?
Simply put, the minimum wage is the lowest hourly wage that an employee can be paid for their work.
Who determines the minimum wage?
In the United States, the minimum wage is determined by both state and federal labor laws. Under the FLSA (Fair Labor Standards Act) both states and localities are able to set their own minimum wage rates.
Five states have not adopted a state minimum wage and two states have a minimum wage that is lower than the federal minimum of $7.25 per hour (see chart). In these seven states, the federal minimum wage rate of $7.25 per hour takes precedence and applies to the employees within that state. Currently, thirty states (and Washington D.C.) have minimum wages that are above the federal minimum wage, in these cases, the state minimum wage takes precedence.
The importance of keeping up with changes
Minimum wage laws are constantly changing and can be complicated. If you are an employer with employees in multiple states, keeping up with these changes can be overwhelming and at times even intimidating! Since 2009, the federal minimum wage has stayed at $7.25 per hour. However, many states have increased their minimum wage and/or will be increasing their minimum wage in the future.
Aurora HR Consulting is vigilant in watching out for all compliance changes throughout the year. Being on top of the minimum wage and other compliance issues, Aurora HR Consulting enables Business Leaders to focus on their productivity and bottom line while feeling confident that their company is in Federal and State compliance.
5 States have not adopted a state minimum wage. | |
The federal minimum wage prevails. | |
State | 2024 Minimum Wage/Effective January 1, 2024 |
Alabama | None, Federal applies $7.25 |
Louisiana | None, Federal applies $7.25 |
Mississippi | None, Federal applies $7.25 |
South Carolina | None, Federal applies $7.25 |
Tennessee | None, Federal applies $7.25 |
2 States are below the federal minimum wage. | |
The federal minimum wage prevails. | |
State | 2024 Minimum Wage/Effective January 1, 2024 |
Georgia | $5.15, Federal applies $7.25 |
Wyoming | $5.15, Federal applies $7.25 |
Minimum Wage By State as of January 1, 2024
State | 2024 Minimum Wage Effective Jan. 1, 2024 |
Alabama | None, Federal applies $7.25 |
Alaska | $11.73 |
Arizona | $14.35 |
Arkansas | $11.00 |
California | $16.00 (Also view wage by city) |
Colorado | $14.42 |
Connecticut | $15.69 |
Delaware | $13.25 |
Florida | $12.00 ($13.00 effective 9.30.2024) |
Georgia | $5.15, Federal applies $7.25 |
Hawaii | $14.00 |
Idaho | $7.25 |
Illinois | $14.00 |
Indiana | $7.25 |
Iowa | $7.25 |
Kansas | $7.25 |
Kentucky | $7.25 |
Louisiana | None, Federal applies $7.25 |
Maine | $14.15 |
Maryland | $15.00 |
Massachusetts | $15.00 |
Michigan | $10.33 |
Minnesota | Annual revenue below $500k - $8.85 Annual revenue of at least $500k - $10.85 |
Mississippi | None, Federal applies $7.25 |
Missouri | $12.30 |
Montana | $10.30 |
Nebraska | $12.00 |
Nevada | $11.25 - Employees not offered qualifying health insurance $10.25 - Employees offered qualifying health insurance ($12.00 effective July 1, 2024) |
New Hampshire | $7.25 |
New Jersey | $15.13 - Businesses with 6+ employees $13.73 - Businesses with less than 6 employees and seasonal employees |
New Mexico | $12.00 |
New York | $15.00 $16.00 - New York City, Long Island, and Westchester County |
North Carolina | $7.25 |
North Dakota | $7.25 |
Ohio | $10.45 |
Oklahoma | $7.25 |
Oregon | $14.20 - Standard ($15.45 - Portland Metro and $13.20 Non-Urban) (Through July 1, 2024) |
Pennsylvania | $7.25 |
Rhode Island | $14.00 |
South Carolina | None, Federal applies $7.25 |
South Dakota | $11.20 |
Tennessee | None, Federal applies $7.25 |
Texas | $7.25 |
Utah | $7.25 |
Vermont | $13.67 |
Virginia | $12.00 |
Washington | $16.28 |
Washington D.C. | $17.00 |
West Virginia | $8.75 |
Wisconsin | $7.25 |
Wyoming | $5.15, Federal applies $7.25 |
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