Minimum Wage Rates by State 2024

What is minimum wage

Seven states have no state minimum and two, Georgia and Wyoming, have a minimum wage less than that provided for at the federal level. Minimum wages were advocated by both labor organizers and consumer groups in the United States but they faced challenges from business interests. Several states attempted to pass minimum wage laws but they were rebuffed by a 1923 Supreme Court decision that declared minimum wage laws to be unconstitutional. Your state may also have different minimum wages for employees who receive tips. Find out if your state has a higher minimum wage for tipped workers.

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  • The majority of U.S. adults (62%) favored raising the minimum wage to $15 an hour, according to an April 2021 Pew Research Center study.
  • The U.S. Department of Labor lists the up-to-date minimum-wage laws for each state.
  • Thirteen states have minimum wages equal to the federal minimum, and two states – Wyoming and Georgia – have minimum wages below the federal minimum wage.
  • Meanwhile, major industries, including retail, administrative, and support services, are forecast to experience large job losses.
  • Your state may also have different minimum wages for employees who receive tips.

Minimum wage laws were designed to end the exploitation of workforces and ensure that a country’s working population doesn’t fall below the poverty line. The Fair Labor Standards Act (FLSA) establishes the minimum wage affecting full-time and part-time workers in the private sector and federal, state, and local governments. An employer who is subject to the federal and state minimum wage requirements must pay the higher of the two. The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some states do have laws under which such claims (sometimes including fringe benefits) may be filed. Other programs that allow for payment of less than the full federal minimum wage apply to workers with disabilities, full-time students, and student-learners employed pursuant to sub-minimum wage certificates.

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Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. Where an employee is subject to both the state and minimum wages federal minimum wage laws, the employee is entitled to the higher minimum wage rate. Minimum-wage laws raise businesses’ labor costs, which typically take up a large portion of their budgets.

What is minimum wage

The least likely of all genders and races to make the minimum or below are white men, at 0.7%. Workers under age 25 represented just under 20% of hourly paid workers, but they made up about 48% of those who were paid the federal minimum wage or less. Among workers who were paid hourly rates, 2% of women and 1% of men were paid at or below the federal minimum wage. They help the workers who have jobs, but they increase unemployment. Meanwhile, major industries, including retail, administrative, and support services, are forecast to experience large job losses.

Employer Resources

The amount of tips plus the $2.13 must reach at least $7.25 per hour. The minimum wage increased to $14.00 on July 1, 2022, and $15.00 on June 1, 2023. The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department’s Wage and Hour Division. 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.

What is minimum wage