Minimum Wage Rates by State and Municipality
Author: Michael Cardman, XpertHR Legal Editor
Many states and municipalities have minimum wage requirements. When a state or municipality's minimum wage rate is higher than the federal government's minimum wage rate (currently $7.25 an hour), employers in that state or municipality must pay their nonexempt employees the higher wage, except in rare situations when an employee is exempt from the state or municipal minimum wage but not the federal minimum wage. Conversely, when a state or municipality's minimum wage rate is lower than the federal minimum wage, employers in that state or municipality must pay their nonexempt employees the federal minimum wage, except in rare situations when an employee is exempt from the federal minimum wage but not the state or municipal minimum wage.
To help ensure that the minimum wage keeps pace with the rising cost of living, many states and municipalities adjust (or will adjust) their minimum wage rates annually. Others adjust their minimum wage rates periodically through legislation or ballot initiatives.
This Quick Reference chart sets forth the state minimum wage rates for all 50 states plus the District of Columbia. It also covers selected local minimum wage ordinances that apply to most or all employees who work within a particular jurisdiction, in contrast to ordinances that apply only to specific types of employers (such as those in Long Beach, California, and SeaTac, Washington) and to living wage1 ordinances that apply only to employees of local governments and the contractors they hire.
Employer coverage, employee exemptions, tip credit rules, subminimum wages, youth opportunity wages and other provisions that may affect the minimum wage vary by jurisdiction. Further details are available by clicking on the state's or locality's name.
1The term living wage often refers to the minimum income necessary for a worker to meet basic needs such as food and housing, but it also is commonly used to describe laws that establish minimum wages for businesses that receive contracts or subsidies from local governments.
2$1.50 less for employers that pay at least $1.50 per hour per employee to a medical benefits plan. Employers that derive more than 50 percent of their income from transactions in which goods or services produced in Richmond are shipped or delivered outside of Richmond may pay an Intermediate Minimum Wage, defined as the midpoint between the state minimum wage and the Richmond minimum wage, rounded up to the nearest cent.
3Lower minimum wage rates apply to small businesses.
4$4.00 for a business with gross annual sales of $110,000 or less
5$7.25 for an employer that provides qualifying health benefits
6$1.00 less for employers that provide employees healthcare and/or childcare benefits with an annualized cost of at least $2,500.
7$7.25 (the federal minimum wage) for an employer with gross revenues under $292,000