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This blog post is written for American businesses. If you run a Canadian company, click here for a list of Minimum Wage Requirements in Canada.

Minimum wage is the lowest hourly pay rate that an employer can pay an employee.

In the United States, the federal government issues a nationwide minimum wage. The current federal minimum is $7.25/hour, and generally, all states must pay no less than the statutory minimum wage.

Each state is able to set their own minimum wage as long as it is above the federal minimum. Currently, many of them have done so.

American employers are required to pay employees, at least, the minimum wage set by their state. It is the employer’s responsibility to adhere to the minimum wage requirements of their state or the federal minimum when applicable.

Service and hospitality workers who are tipped employees have their own minimum cash wage requirements, including a federal minimum of $2.13/hour. In turn, their tips make up the balance toward minimum wage or above.

👉 To check out the most current wage rates, here’s the DOL webpage. Each state is also linked to its wage and hour information. 

Table of Minimum Wage Rates

Updated July 2022

State

Minimum wage

Planned
increases

 Alabama $7.25 

Alabama has no state minimum wage law

 Alaska $10.34

January 1 each year

 Arizona $12.80

 Arkansas $11.00 (for employers with 4 or more employees)

($2.63 for tipped employees)

 California $14.00 (25 or fewer employees)

$15.00 (26 or more employees)

(Several cities also have their own minimum wage laws)

$15.00/$15.00 January 1, 2023

 Colorado $12.56

($9.54 for tipped employees)

January 1 each year

 Connecticut $14.00

$15.00 June 1, 2023

 Delaware $10.50

Washington D.C. $15.20

($5.05 for tipped employees)

 Florida $10.00

January 1 each year

 Georgia $7.25 

($5.15 for employees not covered under FLSA)

 

 Hawaii $12.00

$14.00 January 1, 2024

 Idaho $7.25

 Illinois $12.00

 Indiana $7.25

 Iowa $7.25

 Kansas $7.25

 Kentucky $7.25

 Louisiana $7.25 

 Maine $12.75

January 1 each year

 Maryland $12.20 (14 or less employees)

$12.50 (15 or more employees)

(Montgomery Co. has their own minimum wage laws)

 Massachusetts $14.25

$15.00 January 1, 2023

 Michigan $9.87

 Minnesota $10.33

($8.42 for enterprises with >$500,000 in annual sales volume)

 Mississippi $7.25 

 Missouri* $11.15

$12.00 January 1, 2023

 Montana $9.20

($4.00 for Employers grossing <$110,000 in annual sales and not covered by FLSA)

 Nebraska $9.00

 Nevada $10.50

($9.50 if the firm provides health insurance)

$11.25/$10.25 July 1, 2023

$12.00/$11.00 July 1, 2024

New Hampshire** $7.25 

 New Jersey $13.00

$14.00 January 1, 2023

$ 15.00 January 1, 2024

 New Mexico $11.50

($2.55 for tipped employees)

$12.00 January 1, 2023

 New York $13.20

 New York City $15.00 

($15.00 for Long Island & Westchester)

 North Carolina $7.25

 North Dakota $7.25

 Ohio $9.30 (for businesses grossing >$319,000 per in annual sales)

 Oklahoma*** $7.25

($2.00 if a company has >10 employees or grosses >$100,000 in sales)

 Oregon $13.50

 Pennsylvania $7.25

 Rhode Island $12.25

 South Carolina $7.25 

 South Dakota $9.95

 Tennessee $7.25 

 Texas $7.25

 Utah $7.25

 Vermont $12.55

($6.28 for tipped employees)

 Virginia $11.00

 Washington $14.49

 West Virginia $8.75

 Wisconsin $7.25

 Wyoming $7.25

*Missouri – The minimum wage requirements do not apply for federally covered employment, and the law exempts employees of a retail or service business grossing less than $500,000.

**New Hampshire – The minimum wage requirements do not 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.

👉 Never miss important payroll dates with our 2022 American Small Business Payroll Calendar!

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.