Decoding Minimum Wage By States: Your Path to Informed Financial Growth
Navigating the complexities of employment dynamics, our focus turns to the pivotal subject of minimum wage by state. This exploration sheds light on the varied financial frameworks that influence job choices and fiscal strategies. Join us as we dissect the nuances of state minimum wage, unveiling insights that empower informed decisions and foster financial growth.
What Is the Minimum Wage in All States?
The minimum wage in the US states is multifaceted, mirroring the substantial disparities in the cost of living across states. A majority of states, as well as certain cities, have instituted their individual minimum hourly wage rates, often exceeding the federal benchmark. Below is a summary of the minimum wages for each state, based on the most recent information available:
| State | Minimum wage |
| Alabama | $7.25 |
| Alaska | $11.73 |
| Arizona | $14.35 |
| Arkansas | $7.25 (Less than 4 employees) $11.00 (4 or more employees) |
| California | $16.00 |
| Colorado | $14.42* |
| Connecticut | $15.69 |
| Delaware | $13.25 |
| District of Columbia (Washington, D.C.) | $17.00 |
| Florida | $12.00* |
| Georgia | $7.25 (for FLSA-covered employees) |
| Hawaii | $14.00 |
| Idaho | $7.25 |
| Illinois | $14.00 |
| Indiana | $7.25* |
| Iowa | $7.25 |
| Kansas | $7.25 |
| Kentucky | $7.25 |
| Louisiana | $7.25 (no state minimum) |
| Maine | $14.15 |
| Maryland | $15.00 for all employers, regardless of size |
| Massachusetts | $15.00 |
| Michigan | $10.33* |
| Minnesota | $10.85 |
| Mississippi | $7.25 (no state minimum) |
| Missouri | $12.30 |
| Montana | $10.30 |
| Nebraska | $12.00 (for employers of 4+ employees) |
| Nevada | $10.25 (employees with qualifying health insurance) $11.25 (employees without qualifying health insurance) |
| New Hampshire | $7.25 |
| New Jersey | $15.13 (for large employers) |
| New Mexico | $12.00 |
| New York | $15.00* $16.00 (Long Island, Westchester, & NYC) |
| North Carolina | $7.25 |
| North Dakota | $7.25 |
| Ohio | $10.45 |
| Oklahoma | $7.25 (for employers of 10 or more full-time employees at one location or employers with annual gross sales over $100,000) $2 (all other employees) |
| Oregon | $14.20 (standard state rate) $15.45 (Portland Metro Area) $13.20 (Non-urban counties) |
| Pennsylvania | $7.25 |
| Rhode Island | $14.00 |
| South Carolina | $7.25 (no state minimum) |
| South Dakota | $11.20 |
| Tennessee | $7.25 (no state minimum) |
| Texas | $7.25 |
| Utah | $7.25 |
| Vermont | $13.67 (for employers of two or more employees) |
| Virginia | $12.00 |
| Washington | $16.28 |
| West Virginia | $8.75 (for employers of six or more employees in one location) |
| Wisconsin | $7.25 |
| Wyoming | $5.15 |
Notes:
Colorado – Applicable to retail and service, commercial support service, food and beverage, and health and medical industries
Florida – The Florida minimum wage is scheduled to increase by $1.00 every September 30th until reaching $15.00 on September 30, 2026
Indiana – Applicable to employers of 2 or more employees
Michigan – From 2019 through 2030, the minimum wage will increase annually on a set schedule, provided the unemployment rate in the preceding year does not exceed 8.5%
New York – Employees receive 1 hour of pay at minimum wage rate in addition to owed wages when the spread of hours exceeds 10 hours, there is a split shift or both
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What States Are Raising Their State Wages in 2024?
In 2024, several states have increased their minimum wages, building upon changes implemented in late 2023 and January 1, 2024. Here’s an overview of the minimum wage increases, including the size and type of adjustments:
January 1 Increases
Alaska
- 2023 minimum wage: $10.85
- 2024 minimum wage: $11.73
- Minimum wage increase: $0.88
- Type of increase: Inflation adjustment
Arizona
- 2023 minimum wage: $13.85
- 2024 minimum wage: $14.35
- Minimum wage increase: $0.50
- Type of increase: Inflation adjustment
California
- 2023 minimum wage: $15.50
- 2024 minimum wage: $16.00
- Minimum wage increase: $0.50
- Type of increase: Inflation adjustment
Colorado
- 2023 minimum wage: $13.65
- 2024 minimum wage: $14.42
- Minimum wage increase: $0.77
- Type of increase: Inflation adjustment
Connecticut
- 2023 minimum wage: $15.00
- 2024 minimum wage: $15.69
- Minimum wage increase: $0.69
- Type of increase: Inflation adjustment
Delaware
- 2023 minimum wage: $11.75
- 2024 minimum wage: $13.25
- Minimum wage increase: $1.50
- Type of increase: Legislation
Hawaii
- 2023 minimum wage: $12.00
- 2024 minimum wage: $14.00
- Minimum wage increase: $2.00
- Type of increase: Legislation
Illinois
- 2023 minimum wage: $13.00
- 2024 minimum wage: $14.00
- Minimum wage increase: $1.00
- Type of increase: Legislation
Maine
- 2023 minimum wage: $13.80
- 2024 minimum wage: $14.15
- Minimum wage increase: $0.35
- Type of increase: Inflation adjustment
Maryland
- 2023 minimum wage: $13.25
- 2024 minimum wage: $15.00
- Minimum wage increase: $1.75
- Type of increase: Legislation
Michigan
- 2023 minimum wage: $10.10
- 2024 minimum wage: $10.33
- Minimum wage increase: $0.23
- Type of increase: Legislation
Minnesota
- 2023 minimum wage: $10.59
- 2024 minimum wage: $10.85
- Minimum wage increase: $0.26
- Type of increase: Inflation adjustment
Missouri
- 2023 minimum wage: $12.00
- 2024 minimum wage: $12.30
- Minimum wage increase: $0.30
- Type of increase: Ballot measure
Montana
- 2023 minimum wage: $9.95
- 2024 minimum wage: $10.30
- Minimum wage increase: $0.35
- Type of increase: Inflation adjustment
Nebraska
- 2023 minimum wage: $10.50
- 2024 minimum wage: $12.00
- Minimum wage increase: $1.50
- Type of increase: Ballot measure
New Jersey
- 2023 minimum wage: $14.13
- 2024 minimum wage: $15.13
- Minimum wage increase: $1.00
- Type of increase: Legislation
New York (Remainder of state)
- 2023 minimum wage: $14.20
- 2024 minimum wage: $15.00
- Minimum wage increase: $0.80
- Type of increase: Legislation
New York (NYC, Long Island, and Westchester)
- 2023 minimum wage: $15.00
- 2024 minimum wage: $16.00
- Minimum wage increase: $1.00
- Type of increase: Legislation
Ohio
- 2023 minimum wage: $10.10
- 2024 minimum wage: $10.45
- Minimum wage increase: $0.35
- Type of increase: Inflation adjustment
Rhode Island
- 2023 minimum wage: $13.00
- 2024 minimum wage: $14.00
- Minimum wage increase: $1.00
- Type of increase: Legislation
South Dakota
- 2023 minimum wage: $10.80
- 2024 minimum wage: $11.20
- Minimum wage increase: $0.40
- Type of increase: Inflation adjustment
Vermont
- 2023 minimum wage: $13.18
- 2024 minimum wage: $13.67
- Minimum wage increase: $0.49
- Type of increase: Inflation adjustment
Washington
- 2023 minimum wage: $15.74
- 2024 minimum wage: $16.28
- Minimum wage increase: $0.54
- Type of increase: Inflation adjustment
September 2023 increases
Florida
- 2023 minimum wage: $11.00
- 2024 minimum wage: $12.00
- Minimum wage increase: $1.00
- Type of increase: Ballot measure
These adjustments reflect ongoing efforts to address economic considerations and ensure equitable compensation in various states.
Who Does State Minimum Wage Apply To?
State minimum wage laws typically apply to a broad range of workers, covering various employment scenarios. Here’s a concise overview of who state minimum wage generally applies to:
- Full-time employees: Individuals working regular, full-time jobs fall under the umbrella of state minimum wage laws.
- Part-time employees: Workers with part-time or variable-hour schedules are generally covered and entitled to the state minimum wage.
- Temporary workers: Temporary or seasonal workers are typically included in state minimum wage regulations.
- Teenagers and young workers: State minimum wage laws often extend to teenagers and young workers, providing them with wage protection.
- Independent contractors: Depending on the state, even some independent contractors may be covered by minimum wage laws.
- Tipped employees: Workers who earn tips may have a lower base wage, but state laws often stipulate a minimum cash wage they must receive.
- Disabled workers: Workers with disabilities are generally covered, although some programs may allow for subminimum wages under certain circumstances.
- Trainees and apprentices: Trainees and apprentices may be covered by state minimum wage laws, though there may be specific provisions during training periods.
- Agricultural workers: Agricultural workers are often included, though there can be variations in regulations based on specific state laws.
- Public and private sector employees: State minimum wage laws typically apply to both public and private sector employees.
In addition to state minimum wage laws, it’s crucial to consider the federal minimum wage regulations outlined in the Fair Labor Standards Act (FLSA). The FLSA governs non-exempt employees, typically hourly and blue-collar workers earning less than $684 per week.
However, certain categories of employees are excluded from the federal minimum wage laws, including:
- Tipped employees: Tipped employees who regularly receive more than $30 in monthly tips are subject to specific provisions. Employers must ensure that these employees’ total earnings (including tips and a base cash wage) meet or exceed the minimum wage.
- Full-time students: Full-time students employed by a retail store, university, or service company are covered by the FLSA. Employers must pay these students at least 85% of the federal minimum wage.
- Students in vocational or technical programs: Students enrolled in vocational or technical programs fall under FLSA regulations. They should receive at least 75% of the federal minimum wage during their enrollment period.
- Employees under 20 years old in a probationary period: Employees under the age of 20 completing a three-month probationary period may be paid a subminimum wage of at least $4.25 per hour. After completing the probationary period or reaching age 20 (whichever comes first), they must be paid at least the federal minimum wage.
- Employees with mental or physical disabilities: The FLSA acknowledges employees with mental or physical disabilities that may affect their production capacity. This category includes individuals with conditions such as alcohol or drug addiction, cerebral palsy, blindness, developmental disabilities, or mental illness.
Minimum Wage: Federal vs. State vs. City
Navigating the intricacies of minimum wage laws involves understanding regulations at the federal, state, and even city levels. Each tier establishes its standards, contributing to a nuanced landscape that impacts workers across the United States.
🇺🇸 Federal minimum wage
The federal minimum wage, established by the Fair Labor Standards Act (FLSA), serves as the baseline across the entire United States. As of 2023, the federal minimum wage is $7.25 per hour. Non-exempt employees, typically including hourly and blue-collar workers earning less than $684 per week, fall under federal regulations.
🏛️ State minimum wage
States have the authority to set their minimum wage rates, allowing them to respond to local economic conditions. In 2023, for instance, California has set its minimum wage at $14 per hour, surpassing the federal standard. Workers in California are entitled to this higher rate, illustrating the variability across states.
Additionally, states may have different regulations regarding exemptions and special provisions, impacting various categories of workers.
🏙️ City minimum wage
Cities within states may further tailor minimum wage ordinances to address unique economic dynamics. In Seattle, Washington, the minimum wage is $15.75 per hour as of 2023. This local ordinance, higher than both the federal and state rates, reflects the city’s cost of living and showcases the localized approach to wage regulations.
Workers are entitled to the highest minimum wage rate applicable to their specific location—whether it be the federal, state, or city rate. This nuanced approach ensures that employees receive compensation aligned with the economic conditions of their particular region.
Which State Has the Highest Minimum Wage Now?
Leading the charge in providing substantial minimum wages, Washington claims the top position with an impressive rate of $16.28 per hour. A snapshot of states boasting the highest minimum wages is outlined below:
| State | Minimum wage |
| Washington | $16.28 |
| California | $16 |
| Connecticut | $15.69 |
| Oregon | $15.45 (Portland metro area) |
| New York | $16.00 (Long Island, Westchester, and New York City) $15.00 |
| New Jersey | $15.13 |
| Massachusetts | $15.00 |
| Maryland | $15.00 |
Notably, if Washington, D.C., were considered a state, it would have claimed the top spot with an impressive $17 per hour. These states showcase a commitment to setting high standards for minimum wages, reflecting a broader movement toward equitable compensation for workers.
Conclusion
In conclusion, the minimum wage landscape in the United States varies significantly, reflecting diverse rates set by each state. Leading the charge are Washington and California, with the highest minimum wages at $15.74 and $15.50 per hour, respectively. Other states, including Connecticut, Massachusetts, New York, Oregon, and New Jersey, also prioritize fair compensation, surpassing $14 per hour. This dynamic environment underscores a nationwide movement to surpass federal mandates and ensure equitable compensation for workers. With 13 states on track to reach or exceed $15 per hour in 2023 and beyond, the commitment to fair wages is evident. As states proactively address income disparities through annual adjustments and phased increases, it is crucial to stay vigilant in meeting the evolving needs of workers for a just and sustainable economic future.
