As part of the Fair Labor Standards Act (FLSA) all non-exempt employees in the United States are guaranteed a minimum amount of re-imbursement for their labor. Since 2009, this amount has been $7.25 but many states have also passed their own minimum wage resolutions that are higher, especially since many studies show that the federal minimum wage is simply not enough to live on even when working full time.
Many states have also passed resolutions that require the minimum wage to rise every year along with rising costs of living. These rising costs of living are measuring in different ways including consumer price index and inflation, although many states have simply set a specific amount that minimum wage will be raised every year.
Many other developed countries have much higher federal minimum wages, Australia’s minimum wage is over $17 an hour for example while in England the minimum wage is over $10 an hour. Some countries have much lower minimum wage rates as well however. Mexico for example has a daily minimum wage that works out to around $5 a day while Cuba is on the extreme low end with a monthly minimum wage of just $20. Cost of living is of course much lower in these countries.
For those looking for places that pay the most, check out our list of the states with the highest minimum wages in the USA. These are places where cost of living is also higher than average as well so it’s important to remember that absolute savings or earnings are subject to other factors.
Here is our complete list of state by state minimum wage rates, use it along with our state of the art employment scheduling software to keep your payment info up to standard.
- Alabama $7.25
- Alaska $9.84
- Arizona $10.50 (Rate increases annually based on cost of living)
- Arkansas $8.50
- California $11.00 (Annual increases passed through 2023)
- Colorado $10.20 (Rate increases annually based on cost of living)
- Connecticut $10.10
- Delaware $8.25
- District of Columbia (Washington DC) $13.25 (Rate increases annually based on cost of consumer price index in 2021)
- Florida $8.25 (Rate increases annually based on cost of living)
- Georgia $5.15 (Those covered under FLSA still paid $7.25 but those not may be paid $5.15)
- Guam $8.25
- Hawaii $10.10
- Idaho $7.25
- Illinois $8.25
- Indiana $7.25
- Iowa $7.25
- Kansas $7.25
- Kentucky $7.25
- Louisiana $7.25
- Maine $10.00 (Rate increases annually based on consumer price index beginning in 2021)
- Maryland $10.10
- Massachusetts $11.00
- Michigan $9.25 (Rate increases annually based on consumer price index beginning in 2019)
- Minnesota $9.65 (With set annual increases beginning 2018)
- Mississippi $7.25
- Missouri $7.85 (Minimum wage can increase or decrease based on state cost of living)
- Montana $8.30 (Rate increases annually based on consumer price index)
- Nebraska $9.00
- Nevada $8.25 (Rate increases annually based on consumer price index and the federal minimum wage)
- New Hampshire $7.25
- New Jersey $8.60 (Rate increases annually based on consumer price index)
- New Mexico $7.50
- New York $10.40 (Set annual increases until 2020, inflation based increases after that)
- North Carolina $7.25
- North Dakota $7.25
- Ohio $8.30 (Rate increases annually based on consumer price index)
- Oklahoma $7.25
- Oregon $10.75 (Set annual increases until 2023, increases based on consumer price index after that)
- Pennsylvania $7.25
- Puerto Rico $7.25
- Rhode Island $10.10
- South Carolina $7.25
- South Dakota $8.85 (Set annual increased beginning in 2016)
- Tennessee $7.25
- Texas $7.25
- Utah $7.25
- Vermont $10.50 (annual increases by %5 or consumer price index, whichever is smaller)
- Virgin Islands $10.50
- Virginia $7.25
- Washington $11.50 (Set annual increases until 2020, annual index increases after that)
- West Virginia $8.75
- Wisconsin $7.25
- Wyoming $7.25
Minimum Wage For Tipped Employees
Keep in mind that many states have separate minimum wages for tipped employees like waiters, bartenders, casino workers etc that is much lower than the state and even the federal minimum wage rate. New York State for example allows for employers to pay $7.50 an hour to tipped employees. Other states, like California, require that all employees, whether they are tipped or not, be paid the full minimum hourly rate.
Minimum Wage for Exempt Employees
An exempt employee is one who does not fall under the FLSA because either they are on an annual salary or work for commission and therefore do not earn an hourly rate. Weekly and monthly salaries for exempt employees must still be equal to or greater than the minimum wage as defined by federal and particular state law. It is illegal for example to pay a full time employee a monthly salary of $500 in any state of the U.S: simply because that equals an hourly rate of $3.12, which is less than half of the legal minimum wage in any state.
How Employment Scheduling Software Can Help
Using an automated system of employment scheduling can help you maintain compliance with federal and state minimum wages even if your business operates across different areas and wage rates. From handling timesheets and time clocks for you to perfectly planning employment scheduling Homebase is the perfect solution to help you stay compliant.