Key Takeaways
- The federal minimum wage 2024 in the United States is the lowest hourly rate employers must pay most employees. To learn more, continue scrolling!
- The annual minimum salary may vary. So, ensure you know the minimum wage regulations in the state where you do business as of 2024.
- Minimum wage regulations are complex. Discover some helpful information about these laws, such as the minimum wage for tipped workers, minimum wage exemptions, etc.
What Is Federal Minimum Wage?
The minimum wage is the lowest amount an employer may legally pay employees each work hour. Independent contractors are exempt from minimum wage rules, so it is essential to ensure employers designate them appropriately.
The Fair Labor Standards Act (FLSA) sets the federal minimum wage. It has been $7.25 per hour since July 24, 2009. Although this rate is applicable nationally, local and state governments in certain regions have set their minimum wages, which may be higher than the federal minimum.
There is much discussion over the federal minimum wage. Proponents believe that it should rise to reflect the cost of living and inflation. On the other hand, opponents claim that higher salaries would burden small businesses and result in job losses.
There has been no change to the federal minimum wage since 2009
Federal Minimum Wage 2024 vs 2023 For All States
The governments of each state set and maintain their minimum wages and raise them as needed. As a result, state wages in most of the United States today exceed the federal rate. Salary levels are adjusted annually to keep up with inflation in certain states, and rates are tied to the Consumer Price Index (CPI).
Below is each state’s federal minimum wage 2024 vs. minimum wage 2023 to help your company comply with the most recent minimum wage regulations.
| State | Minimum Wage 2024 | Minimum Wage 2023 |
| Alabama | $7.25 | $7.25 |
| Alaska | $11.73 | $10.85 |
| Arizona | $14.35 | $13.85 |
| Arkansas | $11.00 | $11.00 |
| California | $16.00 (Federal minimum)$20.00 (Fast food restaurant employees covered by California’s Fast Food Minimum Wage law) | $7.25 (Federal minimum)$15.50 (Fast food restaurant employees covered by California’s Fast Food Minimum Wage law) |
| Colorado | $14.42 | $13.65 |
| Connecticut | $15.69 | $15.00 |
| Delaware | $13.25 | $11.75 |
| District of Columbia | $17.50 | $17.00 |
| Florida | $13.00 | $12.00 |
| Georgia | $7.25 (Federal minimum) $5.15 (If not covered by FLSA) | $7.25 (Federal minimum) $5.15 (If not covered by FLSA) |
| Hawaii | $14.00 | $12.00 |
| Idaho | $7.25 | $7.25 |
| Illinois | $14.00 | $13.00 |
| Indiana | $7.25 | $7.25 |
| Iowa | $7.25 | $7.25 |
| Kansas | $7.25 | $7.25 |
| Kentucky | $7.25 | $7.25 |
| Louisiana | $7.25 | $7.25 |
| Maine | $14.15 | $13.80 |
| Maryland | $15.00 | $13.25 |
| Massachusetts | $15.00 | $15.00 |
| Michigan | $10.33 | $10.10 |
| Minnesota | $8.85 (Small employers) $10.00 (Large employers) | $8.63 (Small employers)$10.59 (Large employers) |
| Mississippi | $7.25 | $7.25 |
| Missouri | $12.30 | $12.00 |
| Montana | $10.30 | $9.95 |
| Nebraska | $12.00 | $10.50 |
| Nevada | $12.00 | $10.25 (Employers that don’t offer qualifying health benefits) $11.25 (Employers that don’t offer qualifying health benefits) |
| New Hampshire | $7.25 | $7.25 |
| New Jersey | $15.13 (Employers with more than six employees)$13.73 (Seasonal and small employers having less than six employees) | $14.13 (Employers with more than six employees)$12.93 (Seasonal and small employers having fewer than six employees) |
| New Mexico | $12.00 | $12.00 |
| New York | $16.00 (New York City, Long Island & Westchester)$15.00 (The rest of the state) | $15.00 (New York City, Long Island & Westchester)$14.20 (The rest of the state) |
| North Carolina | $7.25 | $7.25 |
| North Dakota | $7.25 | $7.25 |
| Ohio | $10.45 | $10.10 |
| Oklahoma | $7.25 | $7.25 |
| Oregon | $14.70 (Standard)$15.95 (Portland)$13.70 (Non-urban counties) | $14.20 (Standard)$15.45 (Portland)$13.20 (Non-urban counties) |
| Pennsylvania | $7.25 | $7.25 |
| Rhode Island | $14.00 | $13.00 |
| South Carolina | $7.25 | $7.25 |
| South Dakota | $11.20 | $10.80 |
| Tennessee | $7.25 | $7.25 |
| Texas | $7.25 | $7.25 |
| Utah | $7.25 | $7.25 |
| Vermont | $13.67 | $13.18 |
| Virginia | $12.00 | $12.00 |
| Washington | $16.28 | $15.74 |
| West Virginia | $7.25 (Less than six employees)$8.75 (Six or more employees) | $7.25 (Less than six employees)$8.75 (Six or more employees) |
| Wisconsin | $7.25 | $7.25 |
| Wyoming | $7.25 (Federal minimum) $5.15 (If not covered by FLSA) | $7.25 (Federal minimum) $5.15 (If not covered by FLSA) |
Do All States in the U.S. Have a Minimum Wage?
Not all states in the U.S. have enacted a minimum wage. Louisiana, Alabama, Mississippi, South Carolina, and Tennessee are five states without a minimum wage law. Instead, under the Fair Labor Standards Act (FLSA), employees in these states are entitled to the federal minimum wage of $7.25 per hour.
Which State Has the Highest Minimum Wage 2024 in the U.S.?
As of July 1, 2024, the District of Columbia records the highest minimum wage in the nation, at $17.50 per hour, up from $17.00, even though it is not officially a state. With a minimum pay of $16.28 per hour, Washington has the second highest minimum wage behind D.C.
The District of Columbia records the highest minimum wage
Which State Has the Lowest Minimum Wage 2024 In The U.S.?
Georgia and Wyoming have the lowest minimum wages in the nation, with a $5.15 hourly minimum wage in 2024. Only workers not covered by the Fair Labor Standards Act (FLSA), such as certain opportunity workers, are subject to this rate.
Still, under the FLSA, state minimum wages are superseded by the federal minimum wage of $7.25 per hour, which is what most workers in these states are paid.
What is the Federal Minimum Wage 2024 for Employees Who Get Tips?
The tipped minimum wage rate refers to the lowest hourly wage that an employee may receive. It consists of the employer’s basic cash pay plus a tip credit (which the employer may claim). While several states need a higher rate, federal law sets the minimum basic pay at $2.13 per hour.
If an employee’s tips plus the employer’s direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage, the employer must make up the difference.
The federal minimum wage 2024 for tipped workers
To Whom Does the Minimum Wage Apply?
The federal minimum wage 2024 applies to most hourly and salaried employees protected by the Fair Labor Standards Act (FLSA). It includes those employed in businesses with annual sales or revenue of $500,000 or more. It commonly comprises workers in interstate commerce businesses and federal, state, and municipal government employees.
Are There Any Exceptions to Minimum Wage in the U.S?
The United States has many exemptions to its minimum wage laws. Beginning in January 2024, tipped employees may be subject to a reduced minimum wage of $2.13 per hour if they consistently get more than $30 in tips monthly or if the total tips kept in addition to the hourly wage rate equals or exceeds the federal minimum wage.
Youth workers under 20 may receive a lower salary during their first 90 days of employment. Also, paying a full-time student less than 85% of the minimum wage is illegal if they work for a university, retail outlet, or service provider.
Furthermore, the FLSA permits employers to pay employees with physical or mental disability less than the federal minimum wage.
Who Oversees the Minimum Wage Payment to Employees?
The U.S. Department of Labor’s Wage and Hour Division enforces the minimum wage and guarantees it to employees through enforcement and public education initiatives.
What is the Difference Between the State, Local, and Federal Minimum Wage?
State, local, and federal minimum wage
The minimum wages set by the federal, state, and local indicate several tiers of wage regulation.
The FLSA established the federal minimum wage of $7.25 per hour nationally. Meanwhile, states decide their minimum wage rates to reflect local economic situations. They may be higher than the federal minimum wage.
On the other hand, local minimum wage regulations enacted by cities or counties sometimes surpass federal and state minimum wage rates. This is to meet the increased living expenses in specific areas.
If the federal minimum wage exceeds the state or local minimum, you must pay your employees the federal minimum wage. Yet, pay your employees the state or local minimum wage, whichever is higher, if it is higher than the federal minimum wage.
How Often is There an Increase in the Federal Minimum Wage?
The federal minimum wage in the United States does not rise automatically. Instead, it requires legislative action.
The minimum wage increases if Congress adopts a bill that the President subsequently signs into law. As a result, adjustments to the federal minimum wage are uncommon and influenced by economic and political factors. The last change came in 2009 when the wage was raised to $7.25 per hour.
Ms. Tracy has worked in human resource consulting for over 15 years. A driven entrepreneur focused on business expansion and people development. She previously worked as Country Manager for an international Australia firm that specializes in global workforce management, as well as several key roles as Business Growth Director and Executive Search Director for both large local firms to effectively drive their business growth. A strong emphasis is placed on aligning organizational priorities/objectives with business needs. She has a large network of local business leaders and a thorough understanding of the local market.
