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Minimum wage is the lowest hourly pay rate that an employer can pay an employee. Pretty simply, right? And one less thing to have to decide on as an employer.
In the United States, the federal government issues a nationwide minimum wage, which currently sits at $7.25/hour. Except for certain circumstances, employers have to pay their employees at least this amount for the work they do.
However, it’s not as easy as saying, “I’ll pay my employees the federal minimum!” and being done with it. Each state also has the option to set a higher minimum wage than what the federal government put out. In those cases, employers need to go by the state minimum wage regulations when paying employees.
Now, remember those “certain circumstances” we just mentioned for the federal minimum wage? Some sectors have their own minimum wage requirements. For instance, service and hospitality workers who are tipped employees have a federal minimum wage of $2.13/hour. In turn, their tips make up the balance toward minimum wage or above. Some states also have a minimum wage just for these kinds of employees.
Table: Minimum Wage by State
Here’s a table that breaks down minimum wage amounts by state for the 50 main states, along with any known planned increases. We’ve also included links for each state if you’d like to dive further into these numbers.
|Alabama||$7.25||Alabama has no state minimum wage law|
|Alaska||$10.85||January 1 each year|
|Arkansas||$11.00 (for employers with 4 or more employees)
($2.63 for tipped employees)
($10.63 for tipped employees)
|January 1 each year|
($2.23 for tipped employees)
|$13.25 January 1, 2024
$15.00 January 1, 2025
|Washington D.C.||$16.50||$17.00 July 1, 2023|
|Florida||$11.00||$12.00 September 30, 2023|
(basic minimum wage rate for employers of 6 employees or more)
(for employers subject to the Fair Labor Standards Act)
|Hawaii||$12.00||$14.00 January 1, 2024|
($3.35 for tipped employees)
|Maine||$13.80||January 1 each year|
|Maryland||$12.80 (14 or less employees)
$13.25 (15 or more employees)
(Some counties have their own minimum wage requirements)
(Tipped employees, as long as the amount earned in base wage and tips equals at least $15.00. In cases where it does not, the employer must make up the difference to meet that $15.00 minimum.)
($8.63 for enterprises with >$500,000 in annual sales volume)
($4.00 for Employers grossing <$110,000 in annual sales and not covered by the Fair Labor Standards Act)
|Nebraska||$10.50||$12.00 January 1, 2024
$13.50 January 1, 2025
$15.00 January 1, 2026
($9.50 if the firm provides health insurance)
|$11.25/$10.25 July 1, 2023
$12.00/$11.00 July 1, 2024
($12.93 for seasonal and small employers with fewer than six employees)
|$ 15.00 January 1, 2024|
($3.00 for tipped employees)
($11.85 for tipped service employees; $9.45 for tipped food service employees)
(Long Island, Westchester, New York City)
($12.50 for tipped service employees and $10.00 for tipped food service employees in Long Island, Westchester and New York City)
|Ohio||$10.10 (for businesses grossing >$372,000 per in annual sales)
($5.05 for tipped employees)
($2.00 if a company has >10 employees or grosses >$100,000 in sales)
(Minimum wage can vary by location in Oregan)
|July 1, 2023|
|Rhode Island||$13.00||$14.00 January 1, 2024
$15.00 January 1, 2025
($5.40 for tipped employees)
($6.59 for tipped employees)
($2.33 for tipped employees)
(Standard minimum wage)
(For employers subject to the Fair Labor Standards Act)
*Missouri – The minimum wage requirements don’t apply to employers not subject to minimum wage laws, and the law exempts employees of a retail or service business grossing less than $500,000.
**New Hampshire – The minimum wage requirements don’t apply to employees engaged in household labor, domestic labor, farm labor, outside sales representatives, summer camps for minors, newspaper carriers, non-professional ski patrol and golf caddies.
***Oklahoma – “The law defines an “employer” as having ten or more full-time workers in one place OR more than $100,000 of business a year.” If you do not meet these requirements you fall under the $2.00/hour minimum wage. The $2.00 minimum wage also applies to full-time students.
Additional resources for minimum wage in the United States
- State labor laws – Department of Labor
- Minimum wage – Department of Labor
- State minimum wage laws – Department of Labor (includes District of Columbia, Northern Mariana Islands, Puerto Rico, American Samoa, the Virgin Islands and Guam)
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The advice we share on our blog and in our webinars is intended to be informational. It does not replace the expertise of working with accredited business professionals.
This blog post is written for US minimum wage by state. For Canadian minimum wages by province, click Minimum Wage by Province 2023