Check out our Resource Center for the latest compliance updates, industry trends, thought leadership and best practices to help organizations achieve their vision and reach their potential. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy. Keeping up with these changes almost every year can be challenging, especially if you have employees in multiple states. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

• The minimum wage is adjusted annually on July 1 based on a set formula.
• You can find a list of highest and lowest minimum wage rates here.
• The federal minimum wage for covered nonexempt employees is $7.25 per hour.
• The statewide minimum wage remains at $16 per hour, which is one of the highest in the country.
• As a note, if the state doesn’t have a minimum wage, it follows the federal minimum wage, and we’ve listed the rate as such.
• Under the new law, a newFast Food Council was formed as part of the state’s industrial relations department.

The federal minimum wage is $7.25, but some states pay higher wages. Employers subject to the Fair Labor Standards Act must pay the current federal minimum wage of $7.25 per hour. Employers covered by the FLSA but who are not subject to the Puerto Rico Minimum Wage Act must pay at least the federal minimum wage of $7.25 per hour. The premium overtime pay requirement on either a daily or weekly basis is not applicable to employers of fewer than 4 employees.

The rule applies to fast-food chains with at least 60 locations

8 Ohio employers with annual gross receipts under $385,000 must pay no less than $7.25 per hour. 3 The minimum wage for small employers (enterprises with annual revenues of less than $500,000 per year) in Minnesota is $8.85 per year. Following the enactment of the Puerto Rico Minimum Wage Act (Law 47 of 2021) there will be a yearly increase of the minimum wage from $7.25 to $10.50 per hour by July 1, 2024. By October 1, 2026, the minimum wage will be tied to yearly inflation. Afterwards, the minimum wage will be re-adjusted by a Commonwealth Commissioner annually. Broadly, California often sets the bar for many business decisions that other states later follow.

Sign up on our mailing list here to be the first to know when it is available. “If they cannot get on the ladder because the minimum wage cuts off the first rung, they may be prevented from climbing their way up the ladder to bigger and better jobs,” the organization testified in 2021. For more on income, learn the right way to ask for a raise and how much Social Security benefits have gone up in 2023. Washington state continues to have the nation’s highest base hourly rate, going from $14.49 in 2022 to $15.74 at the start of 2023. The state with the highest minimum wage in 2024 is Washington, at $16.28.

Here’s the Current Minimum Wage in Each of the 50 U.S. States

1 The overtime premium rate is one and one-half times the employee’s regular rate, unless otherwise specified. Applicable to all employees covered by the federal Fair Labor Standards Act (FLSA) except for agricultural employees and employees of municipalities and the Commonwealth of Puerto Rico. Premium pay is required after 45 hours a week in seasonal amusements minimum wages or recreational establishments. 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. The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act when the federal rate is greater than the State rate.

Minimum wages can change every year, depending on the various state and federal laws. While some states follow federal guidance, others set their own requirements. Understanding which rules affect the state(s) you operate in is key to compliance. If you’re in a state that has recently increased its minimum wage, or if you’re working for a company that has increased its wages, try to prioritize your savings goals. By setting aside an emergency fund, you’ll be prepared for unexpected financial concerns that come up.

Get a Federal all-in-one labor law poster

Click or tap states to see details of the minimum wage as of Jan. 1, 2016. The Fair Labor Standards Act gives you the right to a minimum wage. The Department of Labor’s Wage and Hour Division enforces these rights. Official websites use .govA .gov website belongs to an official government organization in the United States. The BLS is committed to providing data promptly and according to established schedules.

6 In Nevada, the minimum wage is $11.25 per hour for employees not offered qualifying health insurance by their employer and $10.25 per hour for employees offered qualifying health insurance by their employer. The “Grand Bargain” passed in 2018 raised wages on an annual schedule, phasing out time-and-a-half while prohibiting employers from requiring work on Sundays and holidays against employee wishes. The FLSA does not provide wage payment collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. At the minimum wage of $16 an hour, a full-time worker makes roughly $32,280 a year, well below the state’s poverty line of $39,990 for a family of four. The law only applies to national fast-food chains with 60 or more locations. It also excludes chains with bakeries, such as Panera, and restaurants within grocery stores.