• 4,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

Home » Articles » A guide to the minimum wage in US states

A guide to the minimum wage in US states

A guide to the minimum wage in US states
  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. California
  6. Colorado
  7. Connecticut
  8. Delaware
  9. Florida
  10. Georgia
  11. Hawaii
  12. Idaho
  13. Illinois
  14. Indiana
  15. Iowa
  16. Kansas
  17. Kentucky
  18. Louisiana
  19. Maine
  20. Maryland
  21. Massachusetts
  22. Michigan
  23. Minnesota
  24. Mississippi
  25. Missouri
  26. Montana
  27. Nebraska
  28. Nevada
  29. New Hampshire
  30. New Jersey
  31. New Mexico
  32. New York
  33. North Carolina
  34. North Dakota
  35. Ohio
  36. Oklahoma
  37. Oregon
  38. Pennsylvania
  39. Rhode Island
  40. South Carolina
  41. South Dakota
  42. Tennessee
  43. Texas
  44. Utah
  45. Vermont
  46. Virginia
  47. Washington
  48. West Virginia
  49. Wisconsin
  50. Wyoming

As an integral aspect of labor laws, the minimum wage sets the baseline for the lowest legal compensation that employers must provide to their employees. 

If you’re new to this landscape, it can be surprising to discover that minimum wage varies per US state. Each has its approach to setting minimum wage rates, reflecting the unique economic factors and social considerations at play. 

This guide delves into the reported minimum wage per US state and any special background behind it. It also covers some overtime pay rules. For a look at how overtime pay works in other countries, you can visit this article

A brief overview of minimum wage in the USA 

The minimum wage serves as the legally mandated lowest hourly wage. It serves as a foundational labor standard to ensure fair compensation for workers across various industries and regions. 

In the United States, the minimum wage is established at both the federal and state levels. Each state has the freedom to set its own minimum wage rate according to local economic conditions. The requirement is that it meets or exceeds the federal minimum wage. 

The Fair Labor Standards Act (FLSA) grants working citizens the right to a minimum wage. This is enforced by the Department of Labor’s Wage and Hour Division. 

Get 3 free quotes 4,000+ BPO SUPPLIERS

As of 2023, USAGov, the official online guide to government information and services in the US, reports the federal minimum wage is $7.25 per hour. 

Additionally, there is a minimum wage for employees who receive tips, which is $2.13 per hour. The employer must pay the difference if the total with tips does not reach $7.25 per hour.  

For a look at the minimum wage around the world, you may visit this article

A brief overview of minimum wage in the USA 
A brief overview of minimum wage in the USA

Minimum wage in the US per state

Take a look at the minimum wage in US states: 

Note: States with no state minimum wage law require that employers subject to the Fair Labor Standards Act must pay the current minimum wage of $7.25 per hour. 

1. Alabama 

Minimum wage: No state minimum wage law. 

Alabama minimum wage applies to most employees. Some exceptions include tipped employees, student workers, and certain occupations.   

Get the complete toolkit, free

2. Alaska 

Minimum wage: $10.85 per hour

The Alaska Department of Labor has approved a voluntary flexible work plan.

 Under this plan, employers may institute an eight-hour day, 40-hour work week with premium pay (after a workday of eight hours). Overtime pay does not apply to those with four employees or less.  

3. Arizona 

Minimum wage: $13.85 per hour 

Arizona increased its minimum wage from $12.80 to $13.85 as of January 1, 2023. This was done to account for the inflation witnessed in the period between August 2021 and August 2022. 

4. Arkansas

Minimum wage: $11 per hour (for those with at least four employees)

Arkansas’s current minimum wage is the result of an annual rate increase that began on January 1, 2019. Employers who are covered by both Federal and State Laws must pay the higher minimum wage. 

5. California 

Minimum wage: $15.50 per hour 

California Labor Code section 510 specifies that any work exceeding eight hours a day is qualified for overtime pay (one and one-half times the regular rate). Any work that exceeds 12 hours a day qualifies for double-time pay. 

6. Colorado 

Minimum wage: $13.65 per hour

In Colorado, minimum wage rate and overtime provisions apply to the following industries:

  • Retail and service 
  • Commercial support service 
  • Food and beverage 
  • Health and medical 

7. Connecticut

Minimum wage: $15 per hour

Connecticut’s minimum wage was increased from $14/hour to $15/hour on June 1, 2023. Should the federal minimum wage rate equal or exceed the State minimum, Connecticut’s minimum wage rate automatically increases by 0.5%.  

8. Delaware 

Minimum wage: $11.75 per hour 

Should the federal minimum wage ever exceed the State minimum wage rate, Delaware will adopt the former. 

9. Florida 

Minimum wage: $11 per hour 

Florida adjusts its minimum wage annually according to a set formula. The last increase is slated for September 30, 2023, which will increase to $12 per hour.  

10. Georgia 

Minimum wage: $5.15 per hour (for employers with six or more employees)

Employees under federal employment are exempt from Georgia State law. This applies if the federal minimum wage is greater than the State minimum. 

11. Hawaii

Minimum wage: $12 per hour 

Hawaii has an additional law where employees with a set monthly salary of at least $2000 are exempted from the State minimum wage and overtime law. 

The State law also doesn’t cover any employment subject to the Fair Labor Standards Act if the federal wage is higher than the State’s.  

12. Idaho 

Minimum wage: $7.25 per hour 

Employees below 20 years old are paid a training wage of $4.25/hour for the first 90 days on the job. Employers can also pay full-time student workers 85% of the State minimum wage for up to 20 hours/week at certain jobs. 

13. Illinois 

Minimum wage: $13 per hour (for those with four or more employees, excluding family members) 

Workers in Illinois who are below 18 years old are paid a minimum wage of $10.50/hour. Tipped workers receive 60% of the State minimum wage.

14. Indiana

Minimum wage: $7.25 per hour (for those with two or more employees) 

Indiana has not increased its minimum wage since 2008, when it instituted a $0.60 increase. 

15. Iowa

Minimum wage: $7.25 per hour 

The Iowa minimum wage is arranged to equal the federal minimum wage if it is ever set below the latter.  

16. Kansas 

Minimum wage: $7.25 per hour 

Kansas State law does not cover any employment that is subject to the Fair Labor Standards Act. 

17. Kentucky 

Minimum wage: $7.25 per hour

Kentucky State overtime laws require employers to compensate those who work seven days in one work week. The required pay is one and one-half times the regular rate. 

The State matches the federal minimum wage rate if the federal rate exceeds the State rate.   

18. Louisiana

Minimum wage: No state minimum wage law. 

Louisiana has not seen an increase in its minimum wage since 2008, when it was raised by $0.70. 

19. Maine 

Minimum wage: $13.80 per hour 

The Maine State minimum wage is adjusted annually based on a set formula. 

If the highest federal minimum wage increases to higher than the State minimum rate, then the latter must increase to the same amount, effective on the same day.

20. Maryland 

Minimum wage: $13.25 per hour (for those with at least 15 employees); $12.80 per hour (for those with fewer than 15 employees)

Maryland’s State minimum wage rate is set to increase to $15/hour on January 1, 2024. This will apply to all employers regardless of company size. 

Maryland 
Maryland

21. Massachusetts

Minimum wage: $15 per hour

Massachusetts law states that the State minimum wage shall in no case be less than $0.50 higher than the effective federal rate. 

22. Michigan 

Minimum wage: $10.10 (for those with at least two employees) 

The Michigan State minimum wage was previously set to increase annually during the period from 2019 to 2030. The new minimum wage would have plateaued at $12/hour, but this initiative has since been paused

23. Minnesota 

Minimum wage: $10.59 per hour (for enterprises with annual revenues of at least $500,000); $8.63 (for enterprises with annual revenues of less than $500,000) 

Minnesota’s State minimum wage follows a set formula and is adjusted annually. The minimum wage for minors (below 18 years old) is set at $8.63/hour. 

24. Mississippi 

Minimum wage: No state minimum wage law.

Mississippi has not changed its minimum wage since 2008, when it raised the amount by $0.70.

25. Missouri 

Minimum wage: $12 per hour 

The Missouri State law does not cover those under federal employment. Additionally, the law exempts retail or service business employees with gross annual sales of less than $500,000.

26. Montana

Minimum wage: $9.95 per hour (for businesses with gross annual sales of more than $110,000); $4 per hour (for businesses with gross annual sales of $110,000 or lower) 

If a business has an individual employee producing or moving goods between states, that employee must be paid the greater wage between the Federal and State minimum rate. 

27. Nebraska 

Minimum wage: $10.50 per hour (for those with four or more employees) 

After passing Initiative 433, Nebraska will experience a minimum wage increase beginning Jan.1, 2023. The plan is to gradually raise the value by $1.50 every year, eventually reaching a minimum wage of $15/hour by 2026. 

28. Nevada 

Minimum wage: $11.25 (if employer does not offer qualifying health insurance); $10.25 (if employer offers qualifying health insurance) 

Nevada set new rules regarding its minimum wage, effective July 1 2023. By July 1, 2024, there will be a new uniform minimum wage of $12/hour for all employees.  

29. New Hampshire 

Minimum wage: $7.25 per hour 

The New Hampshire minimum wage increases to match the federal minimum wage when the former is set below the latter rate. 

30. New Jersey 

Minimum wage: $14.13 per hour

New Jersey’s minimum wage is adjusted annually according to a set formula. There is also a minimum wage of $12.93/hour for seasonal and small employers hiring less than six people. 

31. New Mexico 

Minimum wage: $12 per hour 

The New Mexico minimum wage has steadily increased in recent years due to a 2019 State law. Amendments are being proposed to increase to $16/hour in 2024.

32. New York 

Minimum wage: $14.20 per hour; $15 per hour (for those on Long Island, Westchester, and New York City) 

New York has hospitality regulations entitling overtime pay for residential workers. Overtime pay qualifies for those who worked at least 40 hours/week, compared to the previous 44. 

Additionally, premium pay is given to those in occupations that require 24 hours of consecutive rest if they worked during the said period. 

33. North Carolina 

Minimum wage: $7.25 per hour 

North Carolina employers must provide premium pay after 45-hour work weeks for seasonal amusements or recreational establishments. 

34. North Dakota 

Minimum wage: $7.25 per hour 

North Dakota minimum wage currently follows the federal standard. A bill was introduced in 2021 to raise the amount to $9/hour in 2022, then annually increase it to $15/hour by 2027, but this initiative died in the House. 

35. Ohio 

Minimum wage: $10.10 per hour (for employers with annual gross receipts of at least $372,000); $7.25 per hour (for employers with annual gross receipts under $372,000)

Ohio’s minimum wage rate is adjusted annually based on a set formula.

36. Oklahoma 

Minimum wage: $7.25 per hour (for employers with ten or more employees at any one location or with annual gross sales over $100,000); $2 per hour (for all other employers) 

Oklahoma’s State law does not contain current dollar minimums. The State, therefore, applies the federal minimum wage. 

37. Oregon 

Minimum wage: $14.20 per hour (standard state rate); $15.45 per hour (for the Portland Metro Area); $13.20 per hour (for non-urban counties) 

Oregon employers must provide premium pay after ten hours/day for those employed in the following:

  • Non-farm canneries 
  • Driers 
  • Packing plants 
  • Mills 
  • Factories 
  • Other manufacturing establishments excluding sawmills, planing mills, shingle mills, and logging camps

38. Pennsylvania 

Minimum wage: $7.25 per hour

In June 2023, Pennsylvania passed a measure to raise the State minimum wage to $15/hour by 2026. 

39. Rhode Island 

Minimum wage: $13 per hour 

Rhode Island has separate laws from the State minimum wage law that requires employers to provide time and a half premium pay for work on Sundays and holidays. This applies in retail and certain businesses. 

40. South Carolina 

Minimum wage: No state minimum wage law.

South Carolina’s minimum wage has remained unchanged since 2008, when it increased by $0.70. 

41. South Dakota 

Minimum wage: $10.80 per hour

South Dakota also has a separate minimum wage for workers who receive tips, from $4.98 to $5.40 per hour. 

42. Tennessee 

Minimum wage: No state minimum wage law. 

Tennessee follows the federal minimum wage, and this has been the case for several years. 

Tennessee 
Tennessee

43. Texas 

Minimum wage: $7.25 per hour

Texas applies the federal minimum rate due to not containing current dollar minimums. Any worker under federal employment is exempt from State law coverage.  

44. Utah 

Minimum wage: $7.25 per hour

Utah applies the federal minimum rate due to not containing current dollar minimums. Any worker under federal employment is exempt from State law coverage. 

45. Vermont 

Minimum wage: $13.18 per hour (for those with at least two employees) 

Should the federal minimum wage increase to higher than Vermont’s minimum wage, the State rate automatically rises to match it. 

46. Virginia 

Minimum wage: $12 per hour

Virginia legislation gradually raised the minimum wage beginning in May 2021. It is set to reach $15/hour by January 2026. 

47. Washington 

Minimum wage: $15.74 per hour

Premium pay in Washington may be exchanged for compensating time off. Washington follows a set formula to adjust its minimum wage annually  

48. West Virginia

Minimum wage: $8.75 per hour (for those with at least six employees at one location) 

West Virginia has not increased its minimum wage since 2016, when it saw an increase of $0.75. 

49. Wisconsin 

Minimum wage: $7.25 per hour

Wisconsin minimum wage has matched the federal standard since 2009. Ongoing pushes exist to increase it to $15/hour to account for inflation and a rising cost of living. 

50. Wyoming

Minimum wage: $5.15 per hour

Employers in Wyoming that the Fair Labor Standards Act covers must pay their employees the federal minimum wage. 

Get Inside Outsourcing

An insider's view on why remote and offshore staffing is radically changing the future of work.

Order now

Start your
journey today

  • Independent
  • Secure
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
4,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 4,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 4,000 firms
  • Simple
  • Transparent
Banner Image